Arlington Capital Partners (ACP) has formed Neumo, a cloud-based software and payment services company. The formation of Neumo follows the merger of two current ACP portfolio companies, Avenu Insights & Analytics (acquired in October 2023) and Intellectual Technology (acquired in January 2019), and the new acquisition of GovOS from Audax Private Equity.
Avenu provides cloud-based administrative and compliance software to state and local governments in the United States. The company’s software products include Revenue Discovery and Recovery Services, which help jurisdictions identify underreported taxes and fees; Digital Government Solutions, which support online service portals and permit processing; and Financial Systems, which integrates budgeting, payroll, and accounting functions.
Avenu, led by CEO Paul Colangelo, was founded in 2017 following a spinout from Xerox’s local government solutions business. The company is headquartered near Washington DC, in Centreville, Virginia.
Intellectual Technology Inc. (ITI) provides software and self-service hardware systems for Departments of Motor Vehicles (DMVs) in the United States. The company’s core products include Self-Service Kiosks, which allow users to renew vehicle registrations without waiting in line; Digital Title and Registration Systems, which streamline backend vehicle transaction processing; and Print-on-Demand Tag Services, which enable DMV offices and dealers to issue license plates on-site. ITI also offers payment processing services for DMV-related transactions. ITI was founded in 1996 and is headquartered in Fort Wayne, Indiana.
GovOS provides digital licensing, records management, and civic engagement software and services to city and county governments across the U.S. The company’s flagship products include Business Licensing & Tax, which supports online business registrations and compliance filings; Vital Records, which provides digital issuance of birth, death, and marriage certificates; and Public Records Access, which allows constituents to retrieve government documents through searchable portals. GovOS also offers meeting transparency software used to manage agendas, livestream meetings, and publish council decisions online. GovOS’s customers include clerks’ offices, treasurers, and planning departments in small and midsize municipalities, as well as larger counties that require digitization of analog workflows. The company serves more than 700 city, county, and state agencies across the United States.
Audax acquired GovOS in 2020 through its investment in Kofile Technologies, a provider of information preservation and digitization services. Audax spun GovOS out of Kofile in 2023 as an independent portfolio company. Under Audax, GovOS completed three add-on acquisitions and saw its annual recurring revenues grow approximately fourfold during the firm’s holding period. Today, the company is headquartered in Austin, Texas, and is led by CEO Matt Coury.
“We’re proud of the partnership created with Matt and the entire GovOS team and commend them on their achievement building GovOS into a differentiated and value-added partner to state and local governments,” said Tim Mack, a partner at Audax. “We believe this is a great outcome for GovOS, Neumo, Audax, and our investors, and we wish the entire team at GovOS the best as they pursue this next opportunity to build on their momentum as part of the Neumo platform.”
With these transactions completed, Virginia-headquartered Neumo, led by CEO Paul Colangelo (the current CEO of Avenu) and key executives from ITI and GovOS, now serves more than 4,500 public sector customers across all 50 states. The company’s unified product and services platform includes public administration, DMV systems, revenue compliance, justice, and integrated payments.
Investments in the GovTech sector continues to accelerate as governments digitize core services to improve citizen engagement and efficiency. According to a 2025 McKinsey report, U.S. public sector digital infrastructure investment is expected to surpass $135 billion by 2027, driven by demand for cloud-native systems, cybersecurity, and scalable administrative technologies.
“The need to modernize government represents a historic opportunity,” said Mr. Colangelo. “Governments of all kinds face growing challenges related to budgetary pressures, workforce dynamics, and heightened expectations for ease of access to government services. With the combined resources of Neumo, we can transform how governments deliver for the people and businesses they serve, all at scale. Every touchpoint with the community matters, and Neumo will continue to partner with our customers and innovate in ways that enhance those interactions, anytime, anywhere.”
“Communities need modern governments capable of meeting them wherever they are, with digital technologies people have come to expect and rely on when accessing services,” said Michael Lustbader, a managing partner at Arlington Capital. “Neumo meets this moment by bringing together excellence across a full suite of complementary GovTech software solutions that propel governments forward, while prioritizing user-friendly functionality that powers widespread adoption. Our past experience in the sector reinforces our conviction in the opportunity to scale innovative GovTech platforms like Neumo, and we look forward to working with the entire Neumo team through this next stage of growth.”
Bethesda, Maryland-based Arlington Capital invests in government-regulated industries and adjacent markets including aerospace and defense; government services; and technology, healthcare, and business services. Arlington is led by its managing partners, Matt Altman, Michael Lustbader, Peter Manos, and David Wodlinger. In February 2021, Goldman Sachs Asset Management made a non-voting minority equity investment in the firm. In January 2024, Arlington Capital held a hard cap close of its latest fund, Arlington Capital Partners VI LP, with $3.8 billion of capital. The new fund beat its $3.25 billion target, was significantly oversubscribed, and is the largest fund the firm has ever raised.
Audax Private Equity invests in North American-headquartered businesses that are active in the business services, consumer, financial services, healthcare, industrial services and technologies, and software and technology sectors. Audax Private Equity was founded in 1999 and has offices in Boston, San Francisco, New York, and London.
MidCap Financial, serving as Joint Bookrunner and Joint Lead Arranger, provided a senior secured private credit facility to support the formation of Neumo in its acquisition of GovOS. The MidCap transaction team was led by Jonathan Jacobs. MidCap Financial, in alliance with its investment manager Apollo Capital Management, is a middle-market focused finance firm that provides debt instruments of $10 million to $750 million to companies across all industries.
© 2025 Private Equity Professional | August 20, 2025
Arlington Capital Partners (ACP) has formed Neumo, a cloud-based software and payment services company. The formation of Neumo follows the merger of two current ACP portfolio companies, Avenu Insights & Analytics (acquired in October 2023) and Intellectual Technology (acquired in January 2019), and the new acquisition of GovOS from Audax Private Equity.
“We’re proud of the partnership created with Matt and the entire GovOS team and commend them on their achievement building GovOS into a differentiated and value-added partner to state and local governments,” said Tim Mack, a partner at Audax. “We believe this is a great outcome for GovOS, Neumo, Audax, and our investors, and we wish the entire team at GovOS the best as they pursue this next opportunity to build on their momentum as part of the Neumo platform.”
“Communities need modern governments capable of meeting them wherever they are, with digital technologies people have come to expect and rely on when accessing services,” said Michael Lustbader, a managing partner at Arlington Capital. “Neumo meets this moment by bringing together excellence across a full suite of complementary GovTech software solutions that propel governments forward, while prioritizing user-friendly functionality that powers widespread adoption. Our past experience in the sector reinforces our conviction in the opportunity to scale innovative GovTech platforms like Neumo, and we look forward to working with the entire Neumo team through this next stage of growth.”
Bethesda, Maryland-based 
