State of New Jersey Extends Agreement with Tyler Technologies for Digital Government Solutions

Rhea-AI Summary

Tyler Technologies (NYSE: TYL) has been awarded a three-year contract by the state of New Jersey for digital government solutions. This extends their 15-year relationship and includes an option for two additional years. The contract aims to streamline processes and deliver essential services digitally, enhancing efficiency for staff and accessibility for residents.

Key services include:

• Business filings and certifications
• Tax filings including free solutions for 1040 and corporate taxes
• Appointment scheduling for various agencies
• State police background checks and firearm-related services

Tyler supports over 3,000 agencies and 50 government services across New Jersey, streamlining operations since 2009. The company has also extended its credit card processing services contract for an additional year.

Positive

• Secured a three-year contract with New Jersey for digital government solutions
• Option to extend the contract for two additional years
• Continuation of a 15-year relationship with the state
• Extended credit card processing services contract for an additional year
• Supports over 3,000 agencies and 50 government services in New Jersey

Negative

• None.

Insights

Tech Expert

Tyler Technologies' contract extension with New Jersey marks a significant milestone in government digital transformation. The company's 15-year partnership demonstrates the long-term value and reliability of their solutions. Key services like business filings, tax processing and appointment scheduling showcase Tyler's comprehensive approach to digitizing government operations.

The contract's potential five-year span signals stability for Tyler's revenue stream in this sector. Their ability to secure an extension for credit card processing services further solidifies their position. This continued trust from a major state government could attract other states looking for proven digital solutions, potentially expanding Tyler's market share in the public sector technology space.

Financial Analyst

This contract renewal is a positive indicator for Tyler Technologies' financial outlook. While specific financial terms aren't disclosed, the multi-year nature of the agreement provides revenue stability. Tyler's position as an S&P 500 company, coupled with its expanding client base across 13,000 locations, suggests strong market penetration.

Investors should note the potential for growth beyond the initial three-year term, with a possible two-year extension. The company's ability to cross-sell services, as evidenced by the credit card processing extension, indicates opportunities for increased revenue per client. This contract reinforces Tyler's recurring revenue model, which is typically favored by investors for its predictability.

Market Research Analyst

Tyler Technologies' contract renewal with New Jersey reflects a broader trend in the government technology sector towards comprehensive, integrated solutions. The company's ability to provide services across multiple state agencies positions it well in a market that values efficiency and interoperability.

The emphasis on digital services aligns with increasing citizen expectations for seamless online interactions with government. Tyler's focus on areas like business filings and tax processing addresses key pain points in government-citizen interactions. The inclusion of services like appointment scheduling demonstrates adaptation to post-pandemic operational changes. This contract win could serve as a strong reference point for Tyler in pursuing similar large-scale government contracts, potentially driving market expansion.

Three-year contract builds on existing 15-year relationship with the state

PLANO, Texas--(BUSINESS WIRE)-- Tyler Technologies, Inc. (NYSE: TYL) announced today it has been awarded the Self-Funded eGovernment Application and Services contract by the state of New Jersey for Tyler’s digital government solutions across the Garden State.

The three-year contract, which may be extended for two additional years at the state’s decision, builds upon the 15-year relationship between New Jersey and Tyler’s Digital Solutions Division. The contract will significantly benefit New Jersey and its residents by streamlining processes and delivering essential services digitally. Those services are aimed at enhancing efficiency for staff and accessibility and overall satisfaction for residents. In addition to this contract award, the state has chosen to officially extend Tyler’s previously awarded contract for credit card processing services for another year, allowing Tyler to continue securely processing payments for New Jersey residents and businesses.

Tyler is the incumbent vendor under the previous procurement of this contract and launched many impactful services serving key state agencies during that term such as:

• Division of Revenue and Enterprise Services business filings including Business Formation Service, Annual Reports Service, and the Uniform Certification Service. Businesses may apply for certifications making them eligible for certain set-aside or goal-based contracting initiatives offered by the state and enabling New Jersey businesses to remain at the national forefront of economic vitality and innovation.
• Division of Taxation tax filings including free filing solutions for 1040, corporate business tax, and the property tax relief/senior freeze program.
• Appointment Scheduling for in-person and virtual appointments for various agencies including the Motor Vehicle Commission, Department of Labor, and the Division of Taxation.
• State police background check processing for criminal or non-criminal purposes and various firearm related services for licenses, permits to purchase, retired police officers, and concealed carry permits.

“We are thrilled to have been selected by the State of New Jersey to provide world-class software and solutions to our partner agencies that continue to improve the way residents and businesses interact with their state government,” said Michael LeBlanc, general manager of Tyler's New Jersey state enterprise. “As a New Jerseyan representing our local team, it is my privilege to be given this opportunity to serve our government partners and its constituents across the state.”

Tyler supports more than 3,000 agencies and over 50 government services at both the state and local levels across New Jersey. This collaborative relationship has been streamlining operations and enhancing service delivery since 2009.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) is a leading provider of integrated software and technology services for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 44,000 successful installations across 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20240912072173/en/

Jennifer Kepler

Tyler Technologies

972.713.3770

Media.team@tylertech.com

Source: Tyler Technologies

FAQ

What new contract did Tyler Technologies (TYL) secure with New Jersey?

Tyler Technologies secured a three-year Self-Funded eGovernment Application and Services contract with New Jersey for digital government solutions, with an option to extend for two additional years.

What services will Tyler Technologies (TYL) provide to New Jersey under the new contract?

Tyler Technologies will provide digital government solutions including business filings, tax filings, appointment scheduling, and state police background checks, among other services to streamline processes and enhance efficiency.

How long has Tyler Technologies (TYL) been working with the state of New Jersey?

Tyler Technologies has been in a collaborative relationship with New Jersey for 15 years, streamlining operations and enhancing service delivery since 2009.

What additional contract extension did Tyler Technologies (TYL) receive from New Jersey?

In addition to the new contract, New Jersey extended Tyler Technologies' previously awarded contract for credit card processing services for another year.