Market Overview

Bonfire to Merge with Best-of-Breed 'Govtech' Companies to Power the Digital Transformation of the Public Sector as a New Publicly-Traded Company


Bonfire Interactive Ltd. ("Bonfire"), a leader in public sector sourcing
technology, today announced it signed a definitive agreement with GTY
Technology Holdings Inc. (NASDAQ:GTYHU) ("GTY") to be
acquired for US$108 million in consideration1 and merge with
five leading ‘Govtech' SaaS/cloud platforms to form a new publicly
traded company dedicated to the digital transformation of the public

Founded in November 2016 by Bill Green (former Charmain & CEO,
Accenture), Joe Tucci (former CEO & Chairman, EMC), and Harry You
(former EVP, EMC; former CFO, Accenture & Oracle), GTY is a
US$561-million Special Acquisition Vehicle ("SPAC"). Established to
capture the next large-scale wave of digital transformation, GTY
selected the once-in-a-generation transition of public sector workflows
to the cloud.

This new company is built on the premise that public agencies can have a
uniquely transformative impact on the world when they are empowered by
the right technology. In support of this bold mission, GTY has assembled
a modular cloud platform designed to help organizations transform the
way they engage stakeholders and manage their resources. By combining
six companies that represent key elements of public sector workflows -
budgeting, permitting, billing/payments, grants management, and
procurement (Bonfire) - the united platform supports departments that
are traditionally fragmented and struggling to deliver citizen
engagement and manage back-end-office processes.

"We're in the early stages of a monumental shift in how our governments
and institutions harness the power of the cloud," said Corry Flatt, CEO
and Co-Founder of Bonfire. "If done right, the results extend beyond
cost-savings and efficiencies – the results are better schools, better
healthcare, better roads, better communities – better lives. Joining
forces with these five companies under GTY is a major win for our
clients and our staff. It puts Bonfire on an even more exciting
trajectory towards our ultimate goal of powering trillions of dollars in
spending decisions every year."

Bonfire has become the new standard for eSourcing in public sector and
beyond. Founded in 2012, Bonfire has grown its annual revenue more than
225% each year and today is comprised of a passionate team of more than
80 people. Client success has fueled much of this growth and is
demonstrated by industry-leading client retention and satisfaction rates
(including a Net Promoter Score over 70). Bonfire will leverage GTY
resources to double its go-to-market and product development efforts.
This includes rapidly expanding sales and marketing efforts in both
public and commercial sectors, developing powerful next-generation
sourcing technology with a focus on predictive insights and community
collaboration, and accelerating hiring plans at its headquarters in
Waterloo, Ontario.

Bonfire, along with the other five companies, will continue to operate
as distinct business units led by their existing management teams but
armed with support from GTY's considerable resources and seasoned
executive team. With proven experience in delivering solutions to the
public sector, the GTY executive team will be led by Stephen Rohleder
(former COO, Accenture; former Group CEO Health & Public Service,
Accenture) as Chairman and CEO, Harry You as CFO, and Dan Lauderback
(former Group CTO Health & Public Service, Accenture) as COO.

"Bonfire exemplifies the best qualities of the growing Govtech movement"
said Bill Green, Co-Chairman of GTY, "with an unwavering focus on client
success, a passion for continuous innovation, and a mission that extends
beyond their day-to-day efforts. We are thrilled to welcome the Bonfire
team and further invest in their client growth and product development."

Bonfire was founded by Corry Flatt and Alex Millar, and funded by
Waterloo angel investors, Spider Capital, Garage Capital, FundersClub,
Crosslink Ventures, and Battery Ventures.

The merger is subject to customary closing conditions and is expected to
close during the first quarter of 2019. Through this process, Bonfire
will maintain current operations and will continue to further progress
on existing plans.

About Bonfire

Bonfire, a leader in strategic sourcing and procurement technology,
empowers organizations to make the right purchasing decisions. With
tools to support the entire vendor lifecycle (sourcing, contract
management, and vendor performance), Bonfire goes beyond traditional
mechanics to make complex decision making easy. Bonfire works the way
you do on a single cloud platform designed to unite stakeholders, absorb
compliance requirements, and facilitate advanced evaluation techniques.
The combination of flexible technology with world-class customer service
makes Bonfire the solution of choice for both public and private sector
organizations of all sizes around the globe. Bonfire was named as a 2018
Gartner Cool Vendor and proudly reports a client retention rate greater
than 96 percent.

About GTY

Founded in November 2016 by Bill Green (former Charmain & CEO,
Accenture), Joe Tucci (former CEO & Chairman, EMC), and Harry You
(former EVP, EMC; former CFO, Accenture & Oracle), GTY is a blank check
company formed for the purpose of effecting a merger, share exchange,
asset acquisition, share purchase, reorganization or similar business
combination with one or more businesses.

1 For full details on transaction considerations, please
view the encompassing GTY Schedule 8-K, which will be made available on

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