Tyler Technologies announced it has signed a definitive agreement to acquire privately held New World Systems for $670 million in cash and stock. New World Systems, a provider of public safety and financial solutions for local governments, will bring an important element to Tyler’s portfolio of solutions.

Tyler said it will acquire all of the equity in New World Systems for $360 million in cash and approximately 2.1 million shares of Tyler’s common stock, representing approximately 5.9% of Tyler’s outstanding common shares post transaction, subject to customary post-closing adjustments. The cash portion of the purchase price will be funded from cash on hand and proceeds from a new revolving credit facility, which a company spokesperson said was provided by Wells Fargo as lead arranger.

Founded in 1981 by president and CEO Larry D. Leinweber, the Troy, Michigan-based company has more than 2,000 public sector customers and more than 470 employees. The companies are highly complementary, and combining them supports Tyler’s strategy of being an industry leader in all major enterprise applications essential to local government.

Wells Fargo Securities acted as financial advisor to Tyler Technologies for this transaction.

“This is a complementary and extremely comfortable acquisition for Tyler,” said John S. Marr Jr., Tyler’s president and CEO. “The companies serve related addressable markets, our cultures are very compatible, and we have similar financial and operational philosophies. This transaction demonstrates Tyler’s commitment to creating shareholder value by putting our assets to work with the acquisition of a company that’s already performing well financially and operationally in segments of the public sector market that are strategically important to us. We’re excited about creating value without straying from our core competencies, which lets us avoid the risks that others assume by attempting transformative acquisitions.”