Tyler Technologies to buy NIC in $2.3bn deal

Under the terms of the transaction, which has been unanimously approved by the boards of directors of both companies, NIC shareholders will receive $34 a share in cash.

Tyler described NIC as "a leading digital government solutions and payments company", serving more than 7,100 federal, state, and local government agencies across the nation.

The company’s president and chief executive officer, Lynn Moore, said: "The pandemic has accelerated the shift by governments to online services and electronic payments as more citizens and businesses are interacting digitally with government. NIC is uniquely positioned with its deep expertise and robust digital solutions to partner with us in making government more efficient and more accessible to citizens.

"Our companies share a vision for thriving, connected communities, and our cultures are extremely compatible. The combination will provide extensive benefits for the clients, employees, and shareholders of both companies."

The deal is expected to be accretive to Tyler’s non-GAAP earnings and EBITDA, as well as recurring revenue mix and free cash flow per share, in 2021.