Tyler Technologies ends year in position of strength, plans $185M acquisition
Courtesy / Tyler Technologies Inc.
Tyler Technologies Inc., which has more than 800 employees in Maine across its offices in Bangor, Falmouth, Portland, and Yarmouth (shown above), where the company's ERP and Schools Division is based in a new $28 million 95,000-square-foot campus that opened a year ago. The company reported double-digit growth in total revenues for both the fourth quarter and full year in 2018.
Tyler Technologies Inc. (NYSE: TYl) reported its total revenues for 2018 were $935.3 million, up 11.2% from the $840.9 million reported in 2017. Its fourth-quarter total revenues were $242.0 million, up 11.2% from the $217.9 million reported in Q4 2017.
Based in Plano, Texas, Tyler has more than 800 employees in Maine across its offices in Bangor, Falmouth, Portland, and Yarmouth, where the company’s ERP and Schools Division is based in a new $28 million 95,000-square-foot campus that opened a year ago.
“Our fourth-quarter performance provided a solid finish to 2018,” said Lynn Moore Jr., Tyler’s president and CEO. “We achieved double-digit total revenue growth for the 29th consecutive quarter and both total and organic growth improved over third quarter levels.”
Moore said 2018 was “a year of investment” for Tyler, which acquired five businesses that add to its product offerings in end-to-end information management solutions for local governments and and other government entities.
Among those acquisitions was the May 2018 purchase of Sage Data Security LLC, a Portland company that specializes in cybersecurity. Financial details of the acquisition were not provided, but Tyler stated in a news release it was funded through its existing cash balances. It also purchased in 2018 Socrata Inc., a Seattle-based venture-backed technology company focused exclusively on accelerating the shift to digital government, for $150 million cash, and SceneDoc, a Canadian company that provides mobile-first field-reporting software for law enforcement agencies.
“We used our strong cash flow and balance sheet to make a number of investments that further our growth objectives and create long-term shareholder value,” Moore said. “In total, we used approximately $178 million in cash for acquisitions in 2018. “While these acquisitions represent important additions to our product offerings, we’re also making significant investments in the acquired businesses to strengthen their organizations and integrate their solutions with existing Tyler products.”
Pending acquisition in 2019
Moore highlighted a pending 2019 acquisition of MicroPact, described as a “leading provider of specialized, vertically oriented case-management and business-process-management applications for government.”
The $185 million cash transaction is targeted to close on March 15, pending federal regulatory approvals, and was described by Moore as the second-largest in Tyler’s history.
The company is based in Herndon, Va., employs 469 people, and has annual revenues of more than $70 million, according to the Feb. 1 news release. MicroPact will bring to Tyler more than 350 top-tier public-sector clients, including the Department of Justice, Department of the Treasury, Social Security Administration, and the National Aeronautics and Space Administration, and statewide agencies such as the California Department of Consumer Affairs, the Tennessee Department of Health, and the Florida Office of Regulation.
“MicroPart complements our current product offerings and will significantly expand our total addressable market through its strong presence in the federal space,” Moore said.
Looking forward
In its guidance for 2019, Tyler reported that it expects total revenues to be in the range of $1.08 billion to $1.10 billion.
Capital expenditures are expected to be in the range of $54 million to $56 million, including approximately $16 million related to real estate and approximately $6 million of capitalized software development.
Moore reported that Tyler’s new business pipeline “remains strong” and included a $1.25 billion backlog at the end of Q4 2018.
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