Houlihan Lokey Advises Navient
Houlihan Lokey is pleased to announce that Navient (NASDAQ:NAVI) has finalized the sale of its Government Services business (Navient GS) to an affiliate of Gallant Capital Partners, LLC (Gallant), a Los Angeles-based investment firm.
Navient GS provides tech-enabled business processing services to U.S. federal, state, and local government clients. The business provides citizen engagement, call center, and revenue management solutions for parking, tolling, and tax authorities, as well as public sector agencies responsible for administering government benefits and services to constituents. Approximately 1,200 employees were included in the transaction.
Navient provides tech-enabled education finance solutions that help millions of people achieve success. Navient’s customer-focused, data-driven services deliver exceptional results for clients.
Gallant is a private equity firm that invests in technology, business services, and industrial companies. It executes an operationally focused investment strategy with a priority on partnering closely with companies that can benefit from its extensive industry relationships and operating expertise. With its extensive carveout experience and its OTXTM playbook, Gallant was able to drive a successful outcome for Navient, providing speed and certainty of execution and allowing the company to successfully complete its publicly stated strategic goals. Gallant was founded in 2018 and is headquartered in Los Angeles. The acquisition of Navient GS represents the third platform investment made from Gallant’s second fund, Gallant Capital Partners II.
Houlihan Lokey served as the sole financial advisor to Navient. This transaction showcases Houlihan Lokey’s ability to leverage collaboration across industry teams and extensive divestiture experience to drive a highly successful outcome in a deal involving multiple potential transaction perimeters. In early 2024, Navient retained Houlihan Lokey as its financial advisor to explore a potential divestiture of its Business Processing Solutions segment (BPS), which comprised two distinct operating units: Xtend Healthcare (Xtend), a healthcare revenue cycle management (RCM) business, and Navient GS. The sale of Navient GS follows the successful sale of Xtend to Corro Health, a portfolio company of Carlyle (NASDAQ:CG). The consummation of the Xtend and Navient GS transactions has enabled Navient to successfully complete several major strategic initiatives around portfolio optimization and cost rationalization that were publicly announced in January 2024.
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