Cox Enterprises has made a majority investment in OpenGov, a provider of cloud software for cities, counties and state agencies in the United States. The goal is to “close the growing technology gap that plagues state and local governments,” Open Gov said.
Cox Communications is a Cox Enterprises company. Potentially the software that OpenGov is developing could be useful to Cox Communications business customers.
The transaction values OpenGov at $1.8 billion, according to the company.
OpenGov has almost 1,900 customers in all of the states. Its software is used for budgeting, accounting, procurement, asset management and permitting. The company, which estimates that one in three people in the U.S. are positively impacted by its software, characterized Cox as a “long-time partner.”
OpenGov said that the gov-tech sector is dominated by legacy software. The goal is to confront challenges that governments face. The challenges include “higher demand from residents for digital and cloud services, greater expectations for transparency and community engagement, increased risk of cyber and ransomware attacks and a growing talent gap as the workforce retires,” OpenGov said.
“We have been a long-time investor in OpenGov, and we are thrilled to deepen our commitment,” Alex Taylor, Cox’s chairman and CEO, said in a prepared statement. “This is an important time for our country in many ways.
“In 1920, when my great-grandfather was governor of Ohio, he expressed the need for our people to have ‘an abiding confidence’ in their government. Now, all these years later, we are very excited to help OpenGov grow and build for the future. Powering more effective and accountable government is an inspiring mission, and OpenGov delivers a better experience for governments, residents and businesses alike.”
OpenGov is not the only vendor in the sector. Another company that offers communications service and technology to government agencies is Granite Telecommunications.
