Cox Enterprises To Acquire Software Giant OpenGov In $1.8B Deal

In a significant move, Cox Enterprises is acquiring OpenGov, a prominent software provider for state and city agencies, in a deal valued at $1.8 billion.

What Happened: Cox Enterprises, a family-owned business known for its communication and automotive services, is set to buy the remaining stake in OpenGov, a company it already held a substantial minority stake in, as per The Wall Street Journal on Tuesday. OpenGov, based in San Francisco, specializes in software for local government needs such as budgeting, accounting, and asset management.

The company has been involved with high-profile projects such as assisting the city of Los Angeles in preparing for the 2028 Summer Olympics and aiding an Oregon county in distributing funds to combat homelessness.

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Why It Matters: Cox Enterprises, with an annual revenue of about $23 billion, has a history of acquiring companies with local market expertise. Its Cox Communications division is the third-largest cable provider in the U.S., serving 6.5 million customers.

The acquisition will allow OpenGov to expedite product development and pursue further acquisitions. The company’s board, which includes prominent figures like Marc Andreessen and Joe Lonsdale, will now be a mix of Cox and OpenGov leaders.

This acquisition is a significant move for Cox Enterprises, which has been actively expanding its portfolio. In 2022, the company acquired Axios, a digital news site, in a deal valued at $525 million. The deal expanded Cox’s global readership and its digital news site coverage to include more cities that Axios previously covered.

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