GovOne expands with GovConnect

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

business.

"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 hullite@mindspring.com.