GovOne expands with GovConnect
- By Brian Robinson
- Apr 24, 2002
GovOne Solutions LP, one of the leading providers of government electronic
payment services, is expanding into around-the-clock transaction processing
with the acquisition of GovConnect Inc.
Despite "a little bit of a stall" in the government e-business market
during the past few months as companies focused on such matters as security,
projections for the next three to five years show promise as governments
move forward with transaction-based, digital government programs, said James
Fox, president and chief executive officer of govOne Solutions.
"Governments will be moving from a situation where they are simply providing
information online to trying to exercise the capabilities of [online] systems,"
he said. "So we are building for the long term."
The purchase of GovConnect cost $45 million in cash, according to a
govOne announcement April 17. According to the release, GovConnect's professional
services, technology solutions and transaction processing are at work in
40 states and several major municipalities nationwide, with an emphasis
in health and human services, labor and taxes.
The acquisition boosts govOne's processing services for payments made
to governments, as GovConnect solutions offer constant access to payment
information and transaction processing with governments. But in addition,
Fox said the purchase brings expertise in consulting and technology solutions,
two things that are proving increasingly valuable in the battle for government
"The ability to bring advisory project management experience to the
table makes a lot of difference today as to whether you get a contract or
not," he said. Governments "no longer want to deal with 20 different vendors."
The acquisition reduces the number of vendors in at least one area:
According to govOne, the company now provides electronic funds transfer
services to 29 states.
Robinson is a freelance journalist based in Portland, Ore. He can be
reached at email@example.com.
Brian Robinson is a freelance writer based in Portland, Ore.