“TownCloud acquires…no one”
There’s always a lot of hype over Govtech acquisitions and the story is always the same. The acquisitions always promise to bring great synergies and benefits to customers. Unfortunately, the only ones that ever seem to benefit are the investors who get to cash out.
The increasingly high valuations of these transactions and the fact that equity is transferred from the companies to shareholders (usually VC’s and Private Equity firms) means that customers end up paying for the deal.
The first thing that typically happens in a Govtech acquisition is a reduction in staffing at the acquired company. Management at the acquiring company gets additional compensation that is funded from the cost reductions at the acquired company.
The next step is a price increase for customers who get to pay for the privilege of being part of a larger company. Acquiring management imposes its policies on customers and employees. Many employees leave or are given retirement packages.
You won’t be reading about any Govtech acquisitions by TownCloud. We are a software development company. We build 100% of our software and we earn our customers one at a time. We grow by delivering great results and reinvesting earnings into building additional products on our common technology platform.
TownCloud is based on the principle of long-term growth through delivery of exceptional customer value. We work so that our customers will choose us for decades.