EQT and CPP Investments to acquire HR software provider NEOGOV

Published 28/07/2025, 19:22
EQT and CPP Investments to acquire HR software provider NEOGOV

STOCKHOLM - EQT and Canada Pension Plan Investment Board (CPP Investments) have agreed to acquire NEOGOV, a provider of human capital management software for public sector agencies, from Warburg Pincus and Carlyle, according to a press release statement issued Monday. EQT, with a market capitalization of $32.1 billion and an impressive 54% return over the past year, continues to demonstrate strong market performance. According to InvestingPro analysis, the company appears fairly valued at current levels.

California-based NEOGOV delivers cloud-native human resources and compliance solutions to nearly 10,000 public sector organizations across North America. The company’s software supports the full employee lifecycle from recruitment to performance management while helping government agencies maintain compliance with regulatory frameworks. Want deeper insights into EQT’s acquisition strategy? InvestingPro subscribers get access to exclusive financial health scores and detailed analysis of over 1,400 stocks.

Shane Evangelist will continue as CEO of NEOGOV following the acquisition. The transaction, subject to customary conditions and approvals, is expected to close in the coming months.

"Local governments are the backbone of our communities. Our mission is to help them operate more efficiently and serve citizens more effectively," said Evangelist in the statement.

Arvindh Kumar, Partner and Co-Head of EQT’s Global Technology Team, noted the company’s strong position in the sector, while Sam Blaichman, Managing Director at CPP Investments, cited NEOGOV’s "distinct customer offerings" as aligning with their strategy to invest in quality software companies.

Following this transaction, the EQT X fund is expected to be 60-65 percent invested, including closed and signed investments.

Financial terms of the deal were not disclosed. Moelis & Company LLC served as financial advisor to NEOGOV, while Jefferies LLC advised EQT on the transaction.

In other recent news, EQT Corporation reported second-quarter earnings that surpassed analyst expectations. The company posted adjusted earnings per share of $0.45, exceeding the consensus estimate of $0.42. Revenue for the quarter reached $2.56 billion, significantly higher than the anticipated $1.76 billion. EQT achieved a sales volume of 568 Bcfe, hitting the high end of its guidance, driven by strong well productivity and successful compression projects. This performance underscores the ongoing benefits from its acquisition of Equitrans Midstream Corporation.

In another development, Piper Sandler raised its price target for EQT to $49 from $48, maintaining a Neutral rating. The firm highlighted EQT’s advantageous position to benefit from long-term gas demand in Appalachia. Piper Sandler also noted that EQT anticipates a $250 million increase in free cash flow from newly announced gas supply contracts and infrastructure projects by the fiscal year 2029.

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