Gallant Capital Partners has completed the acquisition of the government services business of publicly traded Navient Corporation.
Navient Government Services (NGS) is a provider of tech-enabled outsourced business processing services to U.S. federal, state, and local governments. The company’s services include tolling and parking technology, call center support, revenue recovery, and payment processing.
NGS operates through five subsidiaries: Navient Business Processing Group, Duncan Solutions, Municipal Services Bureau, Pioneer Credit Recovery, and Navient BPO.
“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, a partner at Gallant.
The carveout of NGS follows Gallant’s May 2024 acquisition of Fime, a Paris-headquartered payments consultancy and testing specialist used for the development, integration, and validation of digital payment systems. Simultaneously with the Fime acquisition, Gallant carved out the digital payments testing business of publicly traded UL Solutions (NYSE: ULS). Both businesses were merged and now operate under the Fime brand.
“This acquisition represents Gallant’s second corporate carveout in the past year and we are pleased Navient chose Gallant on the transaction,” concluded Jon Gimbel, a partner at Gallant. “We are confident that under our ownership and in partnership with the NGS team, the standalone NGS business will thrive.”
Navient Corporation (NASDAQ: NAVI), based in Herndon, Virginia, is a financial services company that was founded as a spinout from Sallie Mae in 2014. The spinout launched Navient as an independent, publicly traded company that took over Sallie Mae’s loan servicing and asset recovery business.
Navient has been restructuring since 2021 when the company announced plans to exit the federal student loan servicing market. This shift is part of a broader effort to streamline operations and focus on its core businesses of private education loan servicing and asset recovery. In September 2024, Navient completed the sale of its equity interests in Xtend, which comprised the company’s healthcare services business within its business processing segment, to CorroHealth for $369 million.
Headquartered in Los Angeles, Gallant Capital makes control investments ranging from $15 million to $200 million in technology, industrial, and business services companies with up to $40 million of EBITDA. The firm was founded in January 2018 by former Gores Group professionals Jon Gimbel and Anthony Guagliano, along with former OpenGate Capital professional Desmond Nugent.
In October 2024, Gallant held the final closing of Gallant Capital Partners Fund II LP, securing $406 million in capital. Gallant’s first fund closed in July 2020 at its hard cap with $378 million in capital commitments.
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