govOne Solutions buys GovConnect for $45M

Electronic payment company govOne Solutions LP has acquired GovConnect Inc. in a $45 million cash deal, govOne announced April 17.

Under the terms of the agreement, govOne Solutions of Greenwood, Colo., is acquiring all outstanding stock of GovConnect of Cincinnati from Aquent LLC of Boston.

GovConnect is a provider of electronic service delivery, consulting and technology solutions. The company was a subsidiary of Renaissance Worldwide Inc. of Newton, Mass., until it was purchased by Aquent in December 2001.

GovConnect, which initially will operate as a subsidiary of govOne Solutions, has about 300 employees and annual revenue of $40 million.

As an operating company of eONE Global of Napa, Calif., govOne Solutions provides electronic payment and other services to federal, state and local government; financial institutions; and business enterprises. eONE Global is owned by First Data Corp. of Atlanta.

The acquisition of GovConnect will help expand govOne Solutions' capabilities, experience and partnerships in the state and local marketplace. To this end, the acquisition will raise to 29 the number of states to which govOne Solutions provides electronic funds transfer services.

"The acquisition of GovConnect complements our current product offering, depth of capabilities and adds a new dimension, [which is] 24 x 7 access to payment information and transaction processing to government," said James Fox, president and chief executive officer of GovOne Solutions. "This partnership represents an excellent fit both strategically and operationally."