EQT has reached an agreement to acquire US-based human resources software firm Neogov in a transaction exceeding $3bn, including debt.

The deal marks a full exit for the company’s current private equity owners, with Warburg Pincus selling its majority stake and Carlyle divesting its roughly one-third holding. A formal announcement is expected in the coming days.

Founded in 2000 and headquartered in El Segundo, California, Neogov provides cloud-based HR software designed for public sector clients. Its solutions help government agencies and public institutions manage recruitment, employee performance, and compliance workflows.

Warburg Pincus initially invested in Neogov in 2016, and Carlyle joined as a minority shareholder in 2021. The deal comes amid increasing transaction activity in the software segment, as sponsors return to the deal table after a quieter second quarter. This is Warburg Pincus’ second notable software exit this month, following its sale of cybersecurity company A-lign to Hg.

For EQT, the acquisition aligns with its strategy of backing high-growth, mission-critical software platforms that offer recurring revenues and strong customer retention. Neogov’s focus on the public sector, where digital transformation remains a strategic priority, adds a defensive growth profile to EQT’s technology portfolio.

The deal further deepens EQT’s exposure to the US software market and underscores growing investor interest in vertical SaaS platforms serving regulated or public market segments.

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