Gallant Capital Completes Acquisition of the Government Services Business of Navient Corporation
Gallant Capital Partners has completed the acquisition of Navient 's (NASDAQ: NAVI) Government Services business (NGS). The acquired business specializes in tech-enabled outsourced business processing for government clients across federal, state, and local levels.
NGS holds a leading position in the tolling and parking technology sector, offering various mission-critical services including call center support, revenue recovery, program management, and payment processing. This acquisition marks Gallant's third platform investment through their second fund, Gallant Capital Partners II.
Gallant Capital Partners ha completato l'acquisizione del business dei Servizi Governativi di Navient (NASDAQ: NAVI) (NGS). L'attività acquisita si specializza in processi aziendali esternalizzati abilitati dalla tecnologia per clienti governativi a livello federale, statale e locale.
NGS detiene una posizione di leadership nel settore della tecnologia per pedaggi e parcheggi, offrendo vari servizi critici per la missione, tra cui supporto per call center, recupero entrate, gestione dei programmi e elaborazione dei pagamenti. Questa acquisizione segna il terzo investimento di piattaforma di Gallant attraverso il loro secondo fondo, Gallant Capital Partners II.
Gallant Capital Partners ha completado la adquisición del negocio de Servicios Gubernamentales de Navient (NASDAQ: NAVI) (NGS). El negocio adquirido se especializa en procesamiento empresarial externalizado habilitado por tecnología para clientes gubernamentales a nivel federal, estatal y local.
NGS ocupa una posición de liderazgo en el sector de tecnología de peajes y estacionamiento, ofreciendo varios servicios críticos para la misión, incluidos soporte de centro de llamadas, recuperación de ingresos, gestión de programas y procesamiento de pagos. Esta adquisición marca la tercera inversión de plataforma de Gallant a través de su segundo fondo, Gallant Capital Partners II.
갤런트 캐피탈 파트너스는 Navient (NASDAQ: NAVI)의 정부 서비스 사업(NGS)을 인수 완료했습니다. 인수된 사업은 연방, 주 및 지방 수준의 정부 고객을 위한 기술 기반 아웃소싱 비즈니스 프로세스를 전문으로 합니다.
NGS는 통행료 및 주차 기술 분야에서 선도적인 위치를 차지하고 있으며, 콜센터 지원, 수익 회수, 프로그램 관리 및 결제 처리 등 다양한 중요한 서비스를 제공합니다. 이번 인수는 갤런트의 두 번째 펀드인 Gallant Capital Partners II를 통한 세 번째 플랫폼 투자로 기록됩니다.
Gallant Capital Partners a finalisé l'acquisition du secteur des Services Gouvernementaux de Navient (NASDAQ: NAVI) (NGS). L'activité acquise se spécialise dans le traitement externalisé des affaires habilité par la technologie pour des clients gouvernementaux à tous les niveaux : fédéral, étatique et local.
NGS occupe une position de leader dans le secteur de la technologie de péage et de stationnement, offrant divers services essentiels, notamment le support des centres d'appels, la récupération des revenus, la gestion des programmes et le traitement des paiements. Cette acquisition marque le troisième investissement de plateforme de Gallant à travers leur deuxième fonds, Gallant Capital Partners II.
Gallant Capital Partners hat die Übernahme des Geschäftsbereichs Regierungsdienstleistungen von Navient (NASDAQ: NAVI) (NGS) abgeschlossen. Das übernommene Geschäft ist auf technologiegestütztes ausgelagertes Geschäftsprozessmanagement für Regierungsstellen auf Bundes-, Landes- und Kommunalebene spezialisiert.
NGS nimmt eine führende Position im Bereich Maut- und Parktechnologie ein und bietet eine Vielzahl von geschäftskritischen Dienstleistungen an, darunter Unterstützung von Callcentern, Einnahmerückgewinnung, Programmmanagement und Zahlungsabwicklung. Diese Übernahme markiert Gallants dritte Plattforminvestition über ihren zweiten Fonds, Gallant Capital Partners II.
- Strategic acquisition of established government services provider
- Access to stable government contracts across federal, state, and local levels
- Market leadership position in tolling and parking technology sector
- Diversified revenue streams through multiple service offerings
- Divestiture of revenue-generating business unit from Navient's portfolio
- Potential loss of government services revenue stream for NAVI shareholders
Insights
This strategic divestiture signals a significant shift in Navient's business model, likely aimed at streamlining operations and focusing on their core competencies in education loan management and business processing solutions. The sale of the Government Services business, which historically provided stable, recurring revenue through government contracts, suggests a deliberate move to reshape the company's portfolio.
The transaction carries several key implications for investors: First, while government contracts typically offer lower-risk, predictable cash flows, they often come with lower margins compared to private sector services. This divestiture could potentially improve Navient's overall margin profile if the capital is reinvested in higher-margin operations. Second, the sale reduces Navient's exposure to government procurement cycles and regulatory complexities, potentially simplifying their business model and reducing compliance costs.
From a balance sheet perspective, the proceeds from this sale could provide Navient with additional financial flexibility. This capital could be deployed toward debt reduction, share repurchases, or strategic acquisitions in their core business areas. The timing of this divestiture, amid rising interest rates and economic uncertainty, suggests a strategic decision to strengthen the company's financial position and focus on areas where they maintain competitive advantages.
Looking ahead, this move positions Navient as a more focused entity in the financial services sector, particularly in student loan servicing and asset recovery. The success of this strategic pivot will largely depend on management's ability to efficiently reallocate capital and execute on growth initiatives in their remaining business segments.
NGS provides tech-enabled outsourced business processing to
The acquisition of NGS represents the third platform investment made from Gallant’s second fund, Gallant Capital Partners II.
About Navient’s Government Services Business
Navient’s Government Services business includes Navient Business Processing Group, Duncan Solutions, Gila (D.B.A. Municipal Services Bureau), Pioneer Credit Recovery and Navient BPO. Across its various segments, NGS provides tech-enabled processing, collections, and record lookups for tolling and parking authorities, outsourced government program management and support, government agency revenue management, and end-to-end payment processing solutions. The Company has approximately 1,200 employees who will be included in the acquisition.
About Navient
Navient (Nasdaq: NAVI) provides technology-enabled education finance solutions that simplify complex programs and help millions of people achieve success. Our customer-focused, data-driven services deliver exceptional results for clients. Learn more at navient.com.
About Gallant
Gallant Capital Partners is a private equity firm that invests in technology, business services, and industrial companies. Gallant executes an operationally focused investment strategy with a priority on partnering closely with companies that can benefit from its extensive industry relationships and operating expertise. The firm partners with owners, founders, and management teams to maximize value and drive long-term, sustainable growth for its portfolio companies. Gallant was founded in 2018 and is headquartered in
View source version on businesswire.com: https://www.businesswire.com/news/home/20250224084699/en/
Media Contact Information:
Jamie Kim
Gallant Capital
jkim@gallantcapital.com
(310) 362 3309
Source: Gallant Capital Partners
FAQ
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