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Tyler Technologies to acquire New World Systems

🕐 2 min read

Tyler Technologies Inc. of Plano has signed a definitive agreement to acquire privately held New World Systems Corp. in a $670 million cash-and-stock deal.

The move would see Tyler gain Michigan-based New World Systems, which provides public safety and financial solutions for local governments.

“This is a complementary and extremely comfortable acquisition for Tyler,” said CEO John S. Marr Jr. in a news release.

“Acquiring New World Systems is a highly strategic and growth-oriented decision, and we plan to invest in their products and find new opportunities both in our combined client bases and in markets where they currently are most competitive,” Marr said.

Echoing that enthusiasm was a New World Systems executive.

“I certainly see this transaction as an opportunity for New World Systems employees and clients to benefit from the kind of investments and vision that Tyler Technologies brings to bear,” said Larry D. Leinweber, founder, president and CEO of New World Systems.

Leinweber described both companies as “complementary in so many ways” and the anticipated deal as a “tremendous opportunity” for employees, clients and investors.

Under terms of the agreement, Tyler would acquire New World Systems for $360 million in cash and about 2.1 million shares of Tyler’s common stock, representing about 5.9 percent of Tyler’s outstanding common shares post-transaction, subject to customary post-closing adjustments.

The cash portion of the purchase price would be funded from cash on hand and proceeds from a new revolving credit facility. The transaction is expected to close in the fourth quarter of 2015 and is subject to regulatory approval and customary closing conditions. Leinweber would join Tyler’s board of directors upon closing of the transaction.

Founded in 1981 by Leinweber, New World Systems has more than 2,000 public sector customers and more than 470 employees. 

Its principal products are Aegis, a public safety suite for dispatch centers, police officers, firefighters, paramedics, corrections officers, command staff, and all first responders; and Logos, a suite of public administration software for city and county governments. Public safety represents about 67 percent of New World Systems’ revenues.

Tyler plans to integrate its Odyssey courts and justice solution with the Aegis public safety platform to create an end-to-end enterprise criminal justice solution.

“Odyssey is already a clear leader in courts and justice software, and we’re seeing very solid growth from our e-filing solution,” Marr said.

“By adding a market leading public safety offering to Tyler’s portfolio of courts and justice solutions, we can deliver a comprehensive enterprise criminal justice system that does not exist in the market today,” Marr said.

Gaining New World Systems would be Tyler’s largest acquisition to date. The transaction is not expected to impact either company’s workforce, and New World Systems’ headquarters in Michigan is expected to continue operating virtually unchanged, according to a news release..

Wells Fargo Securities LLC, acted as financial adviser to Tyler Technologies in the transaction.

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