Telstra Ventures is expected to receive a substantial return from the $US1.8 billion ($2.77 billion) acquisition of a majority stake in US investee company OpenGov.
The acquirer, Atlanta, Georgia, based Cox Enterprises, has been a long-term investor in, and partner with the software company.
OpenGov, which has nearly 1,900 customers in 50 US states, claims to be the leader in providing cloud-based software for local authorities and state government agencies. The company’s software supports activities such as budgeting, accounting, procurement and asset management.
Cox chief executive Alex Taylor said: “Powering more effective and accountable government is an inspiring mission and OpenGov delivers a better experience for governments, residents and businesses alike.”
Chief executive and co-founder of OpenGov, Zac Bookman, said the Cox investment is one of the largest to date in the govtech sector and would enable OpenGov to accelerate product development and advance its mission of developing software that will improve communities.
Legacy software is still widely used by state and local governments but is not up to challenges such as demand from residents for digital and cloud services plus greater expectations for transparency and community engagement.
A privately owned conglomerate founded more than 125 years ago, Cox controls businesses in the broadband, automotive and media industries as well as operating a substantial investment platform. In addition to public sector software, Cox’s investments range across agtech, renewable energy and health care.
Image: The City of Los Angeles is one of many US local authorities that extensively use OpenGov software.