U.S. markets closed
  • S&P 500

    4,594.62
    -106.84 (-2.27%)
     
  • Dow 30

    34,899.34
    -905.04 (-2.53%)
     
  • Nasdaq

    15,491.66
    -353.57 (-2.23%)
     
  • Russell 2000

    2,245.94
    -85.52 (-3.67%)
     
  • Crude Oil

    68.15
    -10.24 (-13.06%)
     
  • Gold

    1,788.10
    +1.20 (+0.07%)
     
  • Silver

    23.14
    -0.40 (-1.70%)
     
  • EUR/USD

    1.1322
    +0.0110 (+0.99%)
     
  • 10-Yr Bond

    1.4820
    -0.1630 (-9.91%)
     
  • GBP/USD

    1.3342
    +0.0022 (+0.16%)
     
  • USD/JPY

    113.2600
    -2.0790 (-1.80%)
     
  • BTC-USD

    54,372.93
    -850.60 (-1.54%)
     
  • CMC Crypto 200

    1,365.60
    -89.82 (-6.17%)
     
  • FTSE 100

    7,044.03
    -266.34 (-3.64%)
     
  • Nikkei 225

    28,751.62
    -747.66 (-2.53%)
     

Tyler (TYL) Rides on Digital Transformation, Buyouts & Deal Wins

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Tyler Technologies TYL is benefiting from a robust demand environment with the public sector increasingly adopting new technologies for smooth functioning amid the ongoing pandemic-led work from home wave and social distancing norms adopted worldwide.

The pandemic disrupted almost every area of the federal government through mandated shutdowns, which led to the growing demand for contactless, digital interaction with the government among citizens and businesses.

With the markets rebounding to pre-COVID levels as evident from an upsurge in market trends, the high level areas in the state governments are focusing on transforming their operations digitally. This is quite evident from the rapid adoption of Tyler’s information-management solutions of late.

As the public sector is transitioning from on-premise and outdated systems to scalable cloud-based systems, Tyler has been gradually advancing its core software applications and expanding complementary product and service portfolios to cater to the evolving needs of customers and keep pace with technological advancements.

In the last reported quarter, the company added 170 new subscription-based arrangements and converted 62 existing on-premises clients, accounting for approximately $73 million in total contract value.

Key Acquisitions

In recent times, Tyler’s growth trajectory has been driven by acquisitions. In September 2021, it announced the buyout of Arx with an aim to integrate Arx under its Public Safety Division.  In the same month, it completed the acquisition of VendEngine, a company providing cloud-based software for correctional facilities, in a cash deal worth $84 million. VendEngine is a provider of financial management applications and communication platforms used by inmates of jails and prisons.

Prior to that, in April 2021, the company completed the buyout of NIC to bank on the pandemic-induced shift to online services and electronic payments by governments. Following the acquisition, the company reported revenues of $405.4 million in second-quarter 2021, reflecting a surge of 49.4% year over year. Management believes that such revenue hikes were primarily caused by post-acquisition contributions of NIC.

We believe that Tyler’s sustained focus on expanding its business through such strategic acquisitions and investments will fuel growth in the long run.

Additionally, Tyler’s technology collaborations with the likes of big tech companies including Amazon’s AMZN Amazon Web Services, Microsoft MSFT and Accenture ACN helps it in providing solutions with the highest level of data security to clients.

Consecutive Deal Wins

Tyler recently signed an agreement with the United States Department of Agriculture's Forest Service Law Enforcement and Investigations to modernize the Criminal Justice Information System with the company’s low-code application development platform – Entellitrak. Also, it inked an agreement with the Texas Office of Court Administration to provide Odyssey Case Manager and Court Insights solutions in the small county courts of Texas.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
Accenture PLC (ACN) : Free Stock Analysis Report
 
Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.