Internet Capital Group Buys GovDelivery

Internet Capital Group, Inc. announced that it has acquired GovDelivery, Inc.

GovDelivery is a platform provider of government-to-citizen digital communication solutions. ICG paid $19.7 million for 89 percent ownership of GovDelivery, according to a release.

GovDelivery's digital subscription management software-as-a-service (SaaS) platform, according to a release, enables government organizations to provide citizens with access to relevant information by delivering new information through email mobile text alerts, RSS and social media channels from over 300 government entities, including over half of all federal agencies; state, county and city governments across 30 states; and many U.K. government entities. Government agencies have used GovDelivery to send over 1.4 billion emails year-to-date, with nearly 15 million subscribers receiving official government information ranging from local transit information to national H1N1 updates.

"GovDelivery represents a valuable addition to the ICG network," said Doug Alexander, President of Internet Capital Group. "Through its platform of solutions for government-to-citizen communication, GovDelivery has established one of the broadest SaaS footprints in the public sector. From a base of strong and recurring revenue growth, a defensible platform and a sizable market opportunity, we believe GovDelivery is well positioned to create long-term value for ICG and its stockholders."

"The acquisition of GovDelivery in partnership with its management team is a great illustration of ICG's primary acquisition focus going forward," said Walter Buckley, CEO of Internet Capital Group. "With a concentrated interest in SaaS, tech-enabled BPO and online marketing/e-commerce markets, we will look to acquire controlling stakes in companies with the goal of building leading platform companies. This strategy is expected to ultimately provide ICG access to cash flow and drive substantial long-term shareholder value. Additionally, we will also explore owning minority interests in rapid-growth companies in our focus sectors."

"GovDelivery has transformed how governments communicate with the public, and this partnership with ICG will allow us to continue to expand our capabilities and our reach," said Scott Burns, CEO and co-founder of GovDelivery. "ICG is an ideal fit for GovDelivery because of the deep domain expertise ICG offers in building successful SaaS companies."

More Information:

www.internetcapital.com

www.govdelivery.com

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