Human Services Software M&A: A Founder's Guide to the 2025-26 Market
Introduction
Human services software occupies a unique position in the technology landscape: it serves some of society's most critical functions (child welfare, disability services, workforce development, homelessness prevention) while operating within complex government procurement cycles and regulatory frameworks. For founders who have built companies in this space, the current M&A environment presents both opportunity and complexity.
The sector is undergoing rapid consolidation. CaseWorthy's acquisition of Eccovia in February 2025, backed by private equity firm STG, created one of the largest purpose-built case management platforms in the market. Findhelp's acquisition of Kiip in mid-2024 expanded social care software capabilities for over 46 million platform users. Meanwhile, Netsmart Technologies, one of the sector's largest players, is reportedly preparing for a sale process in early 2026 at a valuation that could exceed $5 billion.
These transactions reflect a broader pattern: private equity firms and strategic acquirers are recognising that human services software, once viewed as a niche backwater, offers the recurring revenue, high switching costs, and mission-critical status that make for excellent platform investments. Government spending on social services technology continues to grow, and the shift from paper-based to digital case management is far from complete.
For founder-led companies in this space, the question is no longer whether consolidation will reach you, but when and on what terms. This guide provides the market intelligence you need to make that decision from a position of strength.
Market Overview
The Human Services Software Landscape
Human services software encompasses a broad range of applications used by government agencies, nonprofits, and social service organisations to manage client intake, case management, service coordination, outcome tracking, compliance reporting, and billing. The sector serves several distinct sub-verticals:
Child welfare and foster care software manages the complex workflows associated with child protective services, foster care placement, adoption, and family reunification. These systems must comply with federal mandates such as the Comprehensive Child Welfare Information System (CCWIS) requirements and handle sensitive data under strict privacy regulations.
Disability services platforms support organisations providing services to individuals with intellectual and developmental disabilities. Therap Services, one of the sector's established players, provides electronic health records, billing, and compliance tools specifically designed for this population.
Homeless services and continuum of care systems coordinate service delivery across multiple providers, managing housing placements, case notes, and outcome reporting. The U.S. Department of Housing and Urban Development (HUD) requires communities to use Homeless Management Information Systems (HMIS), creating a mandated market for these solutions.
Workforce development software supports government-funded employment and training programmes, managing participant tracking, service delivery, and federal performance reporting requirements.
The overall market for social work case management software is growing steadily, driven by government mandates for digital systems, increasing demand for data-driven service delivery, and the broader digital transformation of public sector operations. Market size estimates vary, but the sector is generally valued in the range of $3-5 billion globally, with mid-single-digit annual growth rates. The Business Research Company's 2026 market report forecasts continued growth driven by increasing government investment in social safety net technologies and the adoption of cloud-based case management solutions.
What makes this market particularly attractive to acquirers is its resilience: government spending on social services is largely counter-cyclical, increasing during economic downturns when demand for services rises. This provides a natural hedge that many technology sectors lack, making human services software an appealing investment during periods of macroeconomic uncertainty.
Key established players include Bonterra (formed from the merger of Social Solutions, EveryAction, CyberGrants, and Network for Good), Netsmart Technologies (serving over 754,000 users across behavioural health, human services, and post-acute care), Therap Services, CaseWorthy, Eccovia (now part of CaseWorthy), Welligent, and Foothold Technology.
M&A Activity and Deal Flow
The CaseWorthy-Eccovia Consolidation
The most significant recent transaction in human services software was CaseWorthy's acquisition of Eccovia, announced on 12 February 2025. Backed by private equity firm STG, this deal combined CaseWorthy's case management platform (serving over 735 customers) with Eccovia's solutions for case management and data analytics (serving more than 160 clients).
The strategic rationale was compelling: the combined platform now supports the entire client lifecycle, from intake to outcome tracking, with particular strength in homeless services through Eccovia's Continuum of Care solution. The deal created one of the largest dedicated case management platforms in the human services sector, positioning the combined entity for further growth and potential add-on acquisitions.
Findhelp's Expansion Through Acquisition
Findhelp (formerly Aunt Bertha) acquired Kiip in July 2024, adding technology that simplifies access to social services and benefits. Kiip, founded in 2021, specialised in reducing administrative burdens for at-risk populations and community-based organisations by providing free document storage, application assistance, and transparency in service processes.
The acquisition expanded Findhelp's platform, which serves over 46 million users and connects individuals with social services providers. Financial terms were not disclosed, but the deal exemplifies how social care platforms are acquiring complementary capabilities to build comprehensive solutions.
The Netsmart Mega-Deal in Waiting
The sector's most closely watched potential transaction is the anticipated sale of Netsmart Technologies. In January 2024, Reuters reported that owners GI Partners and TA Associates were exploring a sale that could value Netsmart at over $5 billion, including debt. The company was expected to generate approximately $250 million in EBITDA in 2024.
According to PE Hub, GI Partners and TA Associates are reportedly preparing to launch the sale process in early 2026, with Goldman Sachs and William Blair engaged as advisers. Potential buyers may include other private equity firms, and the transaction would represent one of the largest ever in human services and behavioural health technology.
Netsmart, founded in 1968, serves community-based healthcare centres, behavioural health organisations, and human services providers. Its platform includes electronic health records, telehealth, analytics, and population health management tools.
The Bonterra Formation
The creation of Bonterra in 2022 through the combination of four social-impact software companies (Social Solutions, EveryAction, CyberGrants, and Network for Good) represented a landmark consolidation in the broader social impact technology space. Bonterra's human services offerings, built on the Apricot case management platform originally developed by Social Solutions, serve healthcare organisations and human services agencies with customisable dashboards, referral capabilities, and compliance tools.
Other Notable Transactions
C&R Software acquired SpringFour in September 2024, bringing financial health solutions into its collections and recovery platform. While positioned at the intersection of financial services and human services, this deal reflects the growing recognition that social service referral capabilities have value across multiple sectors.
The behavioural health sub-sector has seen more cautious activity. The Mertz Taggart Q2 2025 Behavioral Health M&A Report noted only 31 transactions in Q2 2025, the lowest since the pandemic began, with PE firms increasingly keeping deals private due to regulatory scrutiny.
Valuation Benchmarks
What Human Services Software Companies Command
Human services software valuations reflect the sector's unique characteristics: high customer retention driven by regulatory mandates and complex implementations, but often constrained growth rates due to government procurement cycles.
| Metric | Human Services Software | Broader Vertical SaaS |
|---|---|---|
| EV/Revenue | 4x-7x | 4x-8x |
| EV/EBITDA | 15x-22x | 15x-25x |
| Revenue Growth | 8-15% | 10-20% |
| Gross Margin | 60-75% | 65-80% |
| Net Revenue Retention | 105-115% | 100-120% |
Note: Ranges represent estimates based on disclosed transactions and industry benchmarks. Netsmart's reported ~$5 billion valuation on ~$250 million EBITDA implies approximately 20x EBITDA.
Several factors influence where a company falls within these ranges:
Government contract stickiness is a significant value driver. Companies with multi-year government contracts and mandated system usage benefit from extremely low churn rates, which supports premium valuations even with moderate growth.
Compliance capabilities matter enormously. Systems that are certified or approved for specific government programmes (CCWIS, HMIS, Medicaid billing) command higher multiples because compliance barriers create substantial moats.
Data and outcomes reporting capabilities increasingly differentiate platforms. As government funders shift towards outcomes-based models, software that can demonstrate measurable client outcomes commands premium pricing and valuations.
Revenue quality is under particular scrutiny. Acquirers distinguish between true SaaS recurring revenue, government contract revenue (which may be recurring but subject to procurement cycles), and professional services revenue. Higher proportions of SaaS revenue drive higher multiples.
Scale and market share within specific sub-verticals significantly influence valuations. A company that is the dominant provider in a particular niche (for example, the leading foster care software or the primary HMIS platform in multiple continuums of care) can command premium multiples due to limited competition and high barriers to displacement.
Key Acquirer Profiles
Private Equity Firms
STG Partners has emerged as the most active PE consolidator in human services software, backing CaseWorthy's acquisition strategy and the Eccovia deal. STG's approach focuses on acquiring a platform company and executing a buy-and-build strategy through add-on acquisitions.
GI Partners and TA Associates jointly own Netsmart, the sector's largest player. Their anticipated exit will test the market's appetite for large-scale human services technology investments.
Leeds Equity Partners has invested in adjacent education and social impact sectors, making it a potential player in human services software consolidation.
Thoma Bravo and Vista Equity Partners, while more focused on broader enterprise software, have demonstrated interest in government technology and could enter the human services space for the right opportunity.
Strategic Buyers
Bonterra (backed by various institutional investors) is the most obvious strategic consolidator, given its existing platform spanning fundraising, programme management, and case management for social impact organisations.
Netsmart itself has been an active acquirer, and its new ownership (post-sale) may continue this strategy. The company's integration of behavioural health, human services, and post-acute care positions it to acquire adjacent capabilities.
Health information technology companies such as Epic Systems, Oracle Health (formerly Cerner), and athenahealth could potentially enter human services if the sector's data connectivity with mainstream healthcare continues to grow.
The convergence of healthcare and human services is particularly significant. As value-based care models increasingly recognise the impact of social determinants of health (housing stability, food security, employment) on health outcomes, the demand for data interoperability between healthcare IT and human services software is growing. Companies that bridge this gap are positioned to attract interest from healthcare technology acquirers seeking to expand their social determinants capabilities.
Emerging Strategic Acquirers
Findhelp, having raised significant venture capital and executed the Kiip acquisition, could itself become a more active acquirer as it builds out its social care network platform. The company's focus on connecting individuals with social services positions it as a potential consolidator of community-based organisation (CBO) technology tools.
Similarly, Unite Us and other social determinants of health platforms represent potential acquirers (or acquisition targets) as the healthcare industry increasingly invests in closed-loop referral systems and community resource coordination.
Government Technology Integrators
Large government IT services firms, including Maximus, Unisys, and Deloitte, partner with human services software companies and could pursue acquisitions to verticalise their offerings.
Consolidation Drivers
Understanding the Structural Forces at Play
The acceleration of M&A in human services software is driven by several converging forces:
Federal mandates for digital systems continue to expand. The Children's Bureau's CCWIS requirements, HUD's HMIS mandates, and Medicaid's shift to electronic billing create ongoing demand for compliant software platforms. As more agencies transition from legacy systems, the addressable market grows.
The shift to outcomes-based funding is transforming how government agencies evaluate software. Rather than simply tracking activities, agencies increasingly need platforms that can demonstrate measurable client outcomes, linking service delivery to quantifiable results. This favours integrated platforms over point solutions.
Interoperability demands are pushing the sector towards consolidation. As clients interact with multiple service systems (housing, employment, healthcare, child welfare), the need for data sharing across platforms creates a strong rationale for integrated solutions. Acquirers recognise that platforms spanning multiple service domains offer significantly more value than siloed applications.
PE fund deployment pressure provides additional fuel. With record amounts of dry powder in PE funds, the human services software sector's combination of recurring revenue, high retention, and mission-critical status makes it an attractive deployment target, particularly for firms specialising in government technology.
Workforce shortages in social services are accelerating technology adoption. Case workers are overwhelmed, and government agencies are turning to software to automate routine tasks, streamline documentation, and improve caseload management. This creates a structural tailwind for companies whose products demonstrably reduce administrative burden and improve worker efficiency.
The convergence of health and human services data is creating opportunities for integrated platforms. As government agencies recognise the interconnection between healthcare, housing, employment, and social services, demand for platforms that can share data across these domains is growing. This convergence favours larger, integrated platforms and drives consolidation among point-solution providers.
What This Means for Founders
If you have built a human services software company and are considering a sale, the current environment offers meaningful opportunity, but preparation is essential:
Document your government contract base carefully. Acquirers will want to understand contract lengths, renewal rates, and the regulatory mandates that drive usage. Multi-year contracts with high renewal rates are valued at a significant premium over year-to-year arrangements.
Demonstrate compliance capabilities as a moat. If your software is certified, approved, or specifically designed for government programme requirements (CCWIS, HMIS, Medicaid), this creates a defensible position that acquirers will value. Document your compliance certifications and the cost and time required for competitors to achieve similar status.
Quantify your outcomes data. The sector is moving towards outcomes-based models. If your platform can demonstrate measurable improvements in client outcomes, this differentiates you from competitors and justifies premium pricing.
Consider the PE buy-and-build pathway. The CaseWorthy/STG model demonstrates that PE firms are actively seeking platform companies in this space. If your company is positioned as a potential platform (strong market position, scalable technology, room for add-on acquisitions), you may attract PE interest even at relatively modest scale.
Timing considerations are favourable. The anticipated Netsmart sale process in 2026 will bring significant attention to the human services software sector. Smaller companies may benefit from the increased buyer awareness and competitive dynamics that a major transaction creates.
A Sector Coming into Its Own
Human services software is experiencing a once-in-a-generation consolidation cycle. The combination of government mandates driving digital adoption, PE firms deploying capital into mission-critical government technology, and the sector's inherent characteristics of high retention and regulatory moats is creating an exceptionally favourable environment for founders considering exits.
The CaseWorthy-Eccovia deal, the anticipated Netsmart sale, and the ongoing activity of PE firms in this space all signal that acquirers see significant value in purpose-built human services platforms. For founders who have invested years in building software that serves vulnerable populations and complex government programmes, the market is increasingly recognising and rewarding that work.
The founders who will achieve the best outcomes are those who prepare thoughtfully: documenting their regulatory moats, demonstrating their outcomes data, and engaging experienced advisers who understand the unique dynamics of government technology M&A. This is a sector where domain expertise matters enormously, both in building the product and in navigating the sale process. The right advisory team will understand government procurement dynamics, regulatory requirements, and the specific buyer landscape in ways that generalist advisers simply cannot match.