David DiGiacomo
Former CEO, PowerDMS
Case Studies
PowerDMS is a leading provider of compliance software with policy and accreditation management software in public safety and other verticals. Frontier invested in PowerDMS in December 2017 and held the company for three years before merging the business with NEOGOV in December 2020. NEOGOV is a market leader in public sector HR software. NEOGOV offers a full suite of modules to automate HR workflow, from recruiting and development to payroll, employee management and information tracking.
In my experience working with Frontier Growth, I have witnessed a true partnership between a private equity firm, the CEO, and a business that goes beyond numbers—it creates an outcome where the company flourishes, its employees thrive, and customers experience unmatched value. Together, we built a legacy of excellence that serves not just the bottom line, but everyone the business touches.”
This endorsement was not provided by an actual current client of Frontier Growth and was solicited by Frontier Growth. Persons providing endorsements were not paid compensation of any kind, directly or indirectly. These endorsements may not be representative of all clients and are not indicative of Frontier Growth’s future performance. These endorsements are not based on the evaluations of clients or investors of Frontier Growth.
ACTIONS
Frontier and PowerDMS engaged on several value creation initiatives including:
Go-To-Market Strategy
Pricing and Packaging
Talent Development
Improving CAC and ACV
Accelerating Growth at a Larger Scale
Strategic M&A, Among Other Key Plays
OUTCOMES
During our partnership with PowerDMS, the company showed rapid growth and strengthened its GTM strategy, which positioned it well for a merger with NEOGOV. This transaction provided an opportunity to combine two leaders in their respective categories and created a combined platform, ready to deliver holistic HR and policy management solutions and become a true industry leader in the public sector. Over the course of our three-year partnership, PowerDMS grew to be a leader in policy management and is now a part of the NEOGOV HCM platform. PowerDMS is still one of NEOGOV’s key business lines, representing a meaningful portion of the business (approximately 30%). Frontier remains a material shareholder and still serves on the Board.
| POWERDMS |
|---|
| 70%+Growth in TTM Bookings during 3-year Partnership |
| 29%Increase in ACV, 36% Reduction in CAC ratio during 3-year Partnership |
| 9x+TTM Cash EBITDA grew 9x+ during 3-year Partnership |
| NEOGOV |
|---|
| 13000+Public Sector Agencies Served |
| 60%Operating at Rule of 60% |
| 110%+TTM Net Retention |
The data for Neogov is as of August 31, 2024. Backup calculations can be provided upon request.
