i3 Verticals, Inc.

Overview

"How the company got here" "i3 Verticals was founded in 2012 by Greg Daily and a team with deep experience in the payments industry. The company's strategy from the start was to acquire niche software and payment businesses that served specific industries, often embedding payment processing within the software that businesses used daily. Over time, i3 Verticals has strategically shifted its focus more towards software businesses serving the public sector and healthcare industries, recognizing that these markets have complex workflows and can lead to stronger, recurring revenue. The company went public in 2018, which provided it with capital to continue its growth through acquisitions." "What it actually does" "i3 Verticals provides specialized software and payment processing solutions to government entities and other organizations in specific industries, often referred to as vertical markets. Think of it like this: instead of creating a one-size-fits-all software, i3 Verticals creates or buys software designed for the unique needs of a particular type of customer, like a local government office or a healthcare provider. They then integrate payment processing into these specialized software tools, making it easier for these organizations to manage their operations and accept payments. The company generates most of its revenue from these software and related services, including subscriptions, support, and implementation fees." "Public Sector" "This is i3 Verticals' largest area of business, providing software and payment solutions to government agencies at the state and local levels. These solutions help manage a wide range of government functions, such as court systems (including electronic filing and case management), public safety (like computer-aided dispatch and records management), transportation (vehicle titling, driver's licenses), and general public administration. Essentially, they provide the digital tools that help government offices run more efficiently, from processing permits to managing court dockets." "Healthcare" "In the healthcare sector, i3 Verticals offers software and services designed for providers and payers (organizations that pay for healthcare services). This includes tools for managing patient records (like Electronic Health Records or EHR), handling billing and payments (revenue cycle management), and engaging with patients. The goal is to streamline administrative tasks and improve the flow of information within the healthcare system." "Education" "i3 Verticals also provides software solutions for the education sector, primarily focusing on K-12 schools. These solutions help manage various aspects of school operations, such as student meal programs (including account management and point-of-sale systems), school event ticketing, and administrative tasks. They aim to simplify operations for school staff and improve the experience for students and families." "What management is betting on now" "i3 Verticals is focused on growing its core businesses in the public sector and healthcare markets. A key part of their strategy involves continuing to acquire companies that offer specialized software in these areas, which helps them expand their product offerings and customer base. They are also emphasizing organic growth, meaning they aim to grow their existing businesses by selling more of their current products and services to existing and new customers. The company recently sold its merchant services business to concentrate more on its software-centric verticals."