PORTFOLIO SPOTLIGHT
Cox Enterprises
acquires OpenGov
at a $1.8B Valuation
OpenGov CEO Zac Bookman spoke with Sway’s Founding General Partner, Brian Nugent about the recent acquisition with COX Enterprises, and the opportunity to rethink local government.
With a mission to facilitate more efficient and transparent government operations, OpenGov has been acquired by Cox Enterprises in 2024. Currently, over 1,600 agencies across the United States rely on OpenGov to enhance the effectiveness and accountability of their governmental processes.
SWAY LEAD
Brian Nugent
SWAY DEAL TEAM
Najib Khouri-Haddad
Bill Malloy
Greg White
Andy Bair
MILESTONES
Founded 2012
Invested 2014
Acquired 2024
WHY WE INVESTED
We believed OpenGov's integrated suite, encompassing budgeting, operational efficiency, and transparency, could emerge as the pivotal standard in how the public sector harnesses technology. Nestled at the epicenter of transformative shifts, OpenGov was steered by an exceptionally capable team. Founder Zac Bookman's crucial public sector experience gained as an advisor in Afghanistan, coupled with his early tenure as a PayPal product manager, fortified our confidence. Sway invested in OpenGov, seeing the right solution, timing, and team to drive the next generation of GovTech.
“This monumental exit underscores Sway's enduring commitment to partnering with today's most visionary tech entrepreneurs who are transforming global industries.”
Brian Nugent, Founding General Partner at Sway Ventures
Powering effective and more accountable government
OpenGov CEO Zac Bookman spoke at Cox Enterprise's company-wide event on March 29, 2023. Cox Enterprises, an OpenGov investor, partnered with OpenGov based on a shared long-term vision to bring the cloud to local government.
Market Landscape
Over $400 billion is spent annually on government technology, yet most public sector organizations rely on manual processes and outdated on-prem software for vital functions like budgeting, procurement, and payroll. This drives high compliance costs and operational inefficiency. This large, global market was ripe for innovation and an emerging new category leader.
Accelerating cloud adoption, workforce mobility, and data transparency initiatives are forcing government IT modernization. OpenGov sits at the epicenter of this transformation with an integrated next-gen platform driving the sector into the digital age.
While incumbents like Tyler Technologies and Bloomberg Government compete in fragments of this market, OpenGov's end-to-end suite is rapidly becoming the mission-critical enterprise standard.
Acquisition
The acquisition consolidates OpenGov's market leadership and offers new opportunities to scale impact under Cox Enterprises' ownership. Cox, a long-time OpenGov investor, brings formidable resources and sector expertise to expand product innovation and customer reach.
The $1.8 billion purchase proves out our GovTech investment thesis. As pioneers in identifying this vast, under-penetrated market opportunity, we're thrilled to play a role in turning OpenGov into the category-defining enterprise platform leader it is today.