U.S. firm GTY announced plans to acquire Waterloo-based software company, Bonfire Interactive Ltd. for $108 million USD.
Bonfire is one of six companies entering into an agreement with GTY, all of which are at the forefront of public sector digital transformation. The acquisition is expected to close in early 2019, at which point the combined companies will create an integrated software solution for the underserved public sector market. The platform aims to enable governments to improve operations and address citizen demands.
“[We] believe that the state and local government market is at an inflection point, presenting a profound market opportunity to bring together these leading franchises,” states Bill Green, co-chairman of GTY.
“With GTY as a partner, their dynamic founders and teams will create the next integrated, digital solution for governments, with offerings for citizen interface, payments, grant management, budgeting, permitting, and procurement needs. We will give these companies channel support and provide the capital, expertise, and runway they need to capture significant share of this market which is poised for transformation,” he said.
A developer of professional sourcing software, Bonfire’s platform incorporates predictive analysis through machine learning to create a superior client experience. Bonfire has developed a cloud-based platform with tools to support sourcing, contract management, and vendor performance – becoming a global leader in sourcing technology.
Bonfire’s flexible technology works to unite stakeholders and facilitate a streamlined procurement process. With a customer retention rate over 96 percent, it’s clear why GTY has chosen to leverage Bonfire’s expertise for this cloud-based public sector solution. And Bonfire isn’t the only Canadian company involved—GTY will also be acquiring Questica Inc., a provider of budgeting, performance management, and data visualization solutions.
GTY has been strategic in combining organizations that deal with core areas of public sector workflows, including procurement, budgeting, grants management, and more. The acquisition is exciting for all companies involved and will result in a combined company with the potential to create necessary change in the public sector.
“We’re in the early stages of a monumental shift in how our governments and institutions harness the power of the cloud,” says Cory Flatt, co-founder and CEO of Bonfire. “If done right, the results extend beyond cost-savings and efficiencies – the results are better schools, better healthcare, better roads, better communities – better lives.”