Tyler Technologies Acquires New World Systems


Texas-based Tyler Technologies will acquire New World Systems Corporation for $670 million in cash and stock. The Michigan-based company provides public safety and financial solutions for local governments.

The acquisition will add to Tyler’s public safety solutions offerings and expand its criminal justice business line.

New World Systems’ principal products are Aegis, a comprehensive public safety suite for first responders, and Logos, a suite of public administration software. Public safety represents approximately 67 percent of New World Systems’ revenues.

Tyler plans to integrate its Odyssey courts and justice solution with the Aegis public safety platform to create a unique end-to-end enterprise criminal justice solution.

Under the terms of the agreement, Tyler will acquire all of the equity in New World Systems for $360 million in cash and approximately 2.1 million shares of Tyler’s common stock. The cash portion of the purchase price will be funded from cash on hand and proceeds from a new revolving credit facility.

The transaction is expected to close in the fourth quarter of 2015. New World CEO Larry Leinweber will join Tyler’s board of directors upon the closing of the transaction.

“This is a complementary and extremely comfortable acquisition for Tyler. The companies serve related addressable markets, our cultures are very compatible, and we have similar financial and operational philosophies,” said John S. Marr Jr., Tyler’s president and CEO in a statement.