First Stage Investor

Court Innovations Acquired; Investors to Receive Half Cash and Half Stock

Court Innovations Acquired; Investors to Receive Half Cash and Half Stock
By Adam Sharp
Date April 18, 2019
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Court Innovations (CI), which I recommended back in February 2017 (and called a โ€œgemโ€ at the time), has been acquired by Government Brands, a private equity firm out of Atlanta.

Everyone who invested in the deal should have received notices (via email) from Netcapital and CI with all the details. I cannot share all the details here because itโ€™s a private deal and the specifics are being shared only with investors. If you invested in CI and havenโ€™t seen anything yet, check your email inbox or contact Netcapital.

This is a very solid outcome. Investors will receive half their payout in cash and half in Government Brands stock. Government Brands is a much larger company with serious growth potential.

Government Brands is a midsize private company that provides software and other services to governments. Hereโ€™s the description from the companyโ€™s LinkedIn profile:

Government Brands is the preferred partner for government software solutions and integrated payments. Supporting thousands of government customers in 50 states, Government Brands offers solutions for all sizes of governments โ€“ municipalities, counties, states and federal agencies. Our cost-effective solutions with integrated payments improve engagement with the public, and our customer-centric solutions streamline, automate and enhance back-office workflows and overall government operations. Whether you lead a tax office, a court, a 311 center, a permitting office or need to offer payments to the public, Government Brands has a solution that works!

Government Brands sounds like an ideal company to buy CI. It will be able to dramatically expand the reach and potential of CIโ€™s powerful online dispute resolution software.

Private equity operations like Government Brands are designed to be grown, then sold. So hopefully in a few more years Government Brands will be acquired, and everyone who invested in CI will be nicely rewarded.

Good investing,

Adam Sharp

Co-Founder, First Stage Investor

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