Terms were not disclosed. The deal closed in late March but was announced April 3.
The software sold by gWorks can handle such tasks as human resources, utility billing, finance, payments and operations. The company has 2,500 clients including rural utilities, special districts and small- and medium-sized local governments.
Freedom Systems, meanwhile, sells mainly in Pennsylvania, according to the announcement about the deal, and its software handles revenue, tax, equipment and other types of management operations.
“By establishing gWorks as the leading provider to public-sector clients in Pennsylvania, we hope to build awareness for gWorks to continue to grow our customer base,” Joseph Heieck, president and CEO of gWorks, told Government Technology via email.
He added that the acquired company’s client base “aligns very well with our target market.”
gWorks has acquired seven companies in recent years. That includes four acquisitions within the last two years.
In late 2022, for instance, gWorks bought Softline Data, a Minnesota seller of technology for utilities, public works and small local governments, and PubWorks, a Colorado firm active with public works software and other areas.
The more recent acquisitions came via the backing of BV Investment Partners, a Boston-based private equity firm. That activity stands as yet another example of the increasing influence of private equity in the government technology industry.
“Growing market share is the primary driver for all acquisitions,” Heieck said. “We evaluate acquisition opportunities based on a variety of factors including existing customer base, available technology, geography and business performance.”
He said that the “majority” of Freedom Systems employees have joined gWorks, and that the acquired company eventually will operate under the gWorks brand.
