Managing Partner
Government Technology Sector 2024 Update
5 Aug 2024
Government Technology: Modernization Needs and Data-Driven Decision-Making Driving Growth in Government Technology
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Key developments in the Government Technology sector
- The government technology sector is poised for significant growth, driven by the need for modernization, increased focus on cybersecurity, and a rise in data-driven decision making
- Key tech legislation is already underway at the federal, state, and local level, suggesting a holistic need for government system modernization; nearly 84% of states and territories have passed an executive order related to technology modernization
Performance and valuation trends of public Government Technology equities
- Carlsquare’s Government Technology Index has performed in-line with major indices over the last five years and has exhibited strong performance in the last twelve months
- Government technology providers continue to trade at a slight premium to the S&P 500 and a discount to the NASDAQ
Deal activity in the Government Technology sector
- 2024 deal activity has shown improvement since 2023; deal count is on-pace to match 2023 levels, while total capital invested is set to outpace the year prior
- Notable transactions in 2024 include OpenGov’s acquisition of Cox Enterprises for $1.8B