Gallant Capital Partners, a private equity firm recently announced it has signed a definitive agreement to acquire Navient’s Government Services business (NGS). NGS is part of Navient Corporation and provides technology-enabled outsourced business processing support for U.S. federal, state, and local government agency customers.

Gallant Capital Partners is an investment firm that works in sectors where its team has extensive experience and relationships that can drive value. The firm uses its operational expertise to support its management teams while endeavoring to be valuable partners at every stage of its investments. If the signed agreement is completed, this transaction will mark the third platform investment for the private equity firm that has been made through its second fund, Gallant Capital Partners II. 

Navient Corporation and Its Government Services Business

Navient Corporation has been an industry leader for over five decades, providing technology-enabled education finance and business processing solutions that help simplify complex programs while helping millions of individuals reach success. As a major student loan servicer that handled a quarter of student loans in the United States as of 2018, Navient has been on a mission to help the financial success of its clients. Navient Corporation’s customer-focused, data-driven services deliver remarkable results for clients in both education and government. 

As a part of Navient Corporation, Navient’s Government Services business includes Navient Business Processing Group, Duncan Solutions, Gila (D.B.A. Municipal Services Bureau), Pioneer Credit Recovery, and Navient BPO. The government services business and its other subsidiaries were valued at roughly $50 million at the end of September 2023. 

Across NGS’ various segments, it provides tech-enabled processing, collections, and record lookups for tolling and parking authorities, outsourced government program management and support, government agency revenue management, and end-to-end payment processing solutions. 

Gallant Capital Partners and NGS

Founded in 2018, Gallant Capital Partners invests in technology, business services, and industrial companies, executing operationally focused investment strategies that prioritize partnering closely with companies that can reap the rewards of this private equity firm’s extensive industry relationships and operating expertise. Partnering with owners, founders, and management teams, Gallant Capital Partners maximizes value while driving long-term, sustainable growth for its portfolio companies. The company is headquartered in Los Angeles. 

“NGS is a leader in the government services industry with a proven track record of technology-driven innovation and growth. We look forward to supporting the NGS management team and to a future of continued growth as a standalone business,” said Anthony Guagliano, Partner at Gallant. “This acquisition represents Gallant’s second corporate carveout in the past year and we are pleased Navient chose Gallant on the transaction. We are confident that under our ownership and in partnership with the NGS team, the standalone NGS business will thrive,” added Jon Gimbel, Partner at Gallant.

Along with acquiring NGS, Gallant Capital Partners will also acquire approximately 1,2000 employees currently working at NGS. The acquisition comes at the end of a long year for Navient, who experienced million-dollar losses at the end of the fourth quarter last year. The acquisition is expected to close in the first quarter of 2025, subject to certain conditions.

The Future of Tech Industries 

Gallant Capital’s acquisition of Navient is a major move within the tech industry. The tech industry continues to grow rapidly as further advancements are made in the field. 

In 2023, there were approximately 9.5 million employees working in the tech industry in the United States. According to the U.S. Bureau of Labor Statistics, employment in computer and information technology occupations is expected to grow significantly faster than the average for all other occupations between 2023 and 2033. Gallant Capital is just one of many tech companies making major moves as the market grows.