Internet Capital Group Acquires GovDelivery and GovLoop

Internet Capital Group (ICG), a private-equity and venture-capital firm that invests in tech firms, acquired a controlling stake in GovDelivery for $19 million, which acquired GovLoop late last year.

The deal will provide GovDelivery with capital and other resources needed to continue expanding its business, the companies said in a statement earlier.

“ICG is partnering with GovDelivery because we recognize that they are the clear leader in delivering innovative software as a service and social media solutions to the public sector market. We are confident we can help GovDelivery continue to build off of its strong foundation and broaden its market presence,” said Walter Buckley, CEO of ICG (Nasdaq: ICGE), in a press statement.

PR Newswire: GovDelivery Management Partners with Internet Capital Group to Acquire GovDelivery from Existing Investors

GovDelivery Mentioned in WSJ

A couple of days ago GovDelivery announced that they had acquired GovLoop, a rapidly growing social network for government employees. (GovLoop acquired by GovDelivery) The social network should benefit from increased access to capital as it expands it’s user base.

It took eight years for GovDelivery  to reach the one billion email milestone and they reached that billion email milestone already in 2009 alone. That’s momentum! Read about that and the rest of this excerpt from a blog post on NY Times about GovDelivery:

Another under-the-radar company that could be poised to reap the whirlwind is St. Paul, Minn.-based GovDelivery Inc., which has been in stealth mode since 1999, and just last week closed a $2 million funding round from individual investors. GovDelivery has developed a communications platform that enables government agencies to provide information to citizens via email alerts, text bulletins and widgets.

The company, which has reached cash-flow breakeven, provides data services for the Social Security Administration, the Internal Revenue Service, the Health Department, MediCare, federal transportation offices and other departments.

“This year has been by far the best year ever for us,” said Scott Burns, GovDelivery chief executive. “Since 2001, the government has sent two billion emails through GovDelivery. One billion of those have been sent in 2009 alone.”

Source: Big Government Means Big Business For Data-Sharing Start-Ups

Capitol Building

GovLoop Acquired by GovDelivery

GovDelivery has acquired social networking site GovLoop. GovLoop will operate as a division of GovDelivery, with founder GovLoop Steve Ressler to continue in his role as President.

“GovLoop has been called the Facebook® for government, because it helps people across government collaborate and solve real problems every day,” said GovDelivery CEO and co-founder Scott Burns. “Steve Ressler has led GovLoop’s explosive growth and we are excited to have him continue leading GovLoop. With GovDelivery’s resources and expertise, GovLoop’s growth will continue to accelerate and help spur social media adoption in government.”

GovDelivery assists government’s in leveraging digital channels and social media to improve communication to the public and collaboration between government agencies and employees. Currently, between 10,000 and 100,000 new people signup to receive updates to government information each day via the GovDelivery platform. The GovLoop social network should compliment GovDelivery’s offering nicely.

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