Nov 30, 2022

Capstone Partners Advised Celtic Systems on Its Sale to i3 Verticals

Capstone Partners advised Celtic Cross Holdings (Celtic Systems)—a leading provider of enterprise software solutions for the motor carrier and motor vehicle markets—on its sale to i3 Verticals, Inc. The purchase price was $85 million.

Since 2003, Celtic Systems has been a successful developer of enterprise solutions for motor vehicle administrations throughout the United States and Canada. Celtic’s comprehensive enterprise platform merges the motor carrier and motor vehicle services administration, business management, employee training, and customer support into one, unified environment. In addition to software development, Celtic Systems provides business process consulting, implementation and training services, and ongoing support and maintenance. These services help address several longstanding issues faced by government agencies, enabling them to effectively modernize agency-wide systems and supporting technologies.

Capstone was referred to us by a previous client and we have enjoyed the experience from start to finish. Capstone guided us through each step of the process with integrity, leveraging their knowledge to achieve the best results!

Joe McCormickCo-Founder, Celtic Systems

According to Ted Polk, Managing Director at Capstone Partners, “The modernization of aging IT systems is a major priority for many agencies of the government, and it is leading to dramatic improvements in user experiences for citizens. Celtic Systems plays a market-leading role in helping affect these important enhancements for motor vehicle administrations throughout both the United States and Canada, and it was a pleasure to represent them.”

Capstone Managing Director David Brinkley added, “We were privileged to work with the owners, management, and employees of Celtic Systems, who developed unique software technologies that streamline operations at DMV and motor carrier regulatory bodies, enhancing performance, data analysis, and revenue generation. The transaction is yet another wonderful example of the SaaS-driven technology disruption we at Capstone are working to unlock across the entire government sector. We look forward to the acceleration of this business within the i3 family.”

I3 Verticals delivers seamless integrated software solutions and services to small- and medium-sized businesses and other organizations in strategic vertical markets. Building on its sophisticated and diverse platform of software and services solutions, I3 creates and acquires software products to serve the specific needs of public and private organizations and offers deep expertise in the government, education, healthcare, retail, business-to-business, nonprofit, and property management verticals.

Greg Daily, CEO of i3, stated, “This acquisition further strengthens our competitive position in the Public Sector vertical. We see many opportunities to expand the addressable market and to cross-sell within existing customers. We also anticipate that a broader combined product line will enable us to qualify for more RFPs, which should lead to new business for us. Our teams are excited to work together with Celtic Systems on meaningful opportunities.”

The expert investment banking professionals on Capstone Partners’ Government IT Team work with leading middle market companies operating in the Government IT market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Government IT Banking Team, contact us here.