i3 Verticals Bundle
How does i3 Verticals approach sales and marketing post-divestiture?
i3 Verticals' sales and marketing strategy has been significantly reshaped by recent divestitures, notably the sale of its Merchant Services business in September 2024 for $438 million and its Healthcare RCM business in May 2025 for $96 million. This strategic pivot has refined the company's focus to specialized vertical market software.
This concentration allows i3 Verticals to streamline operations and enhance its value proposition within specific, high-growth niches, primarily for the public sector. The company's Q3 2025 results, showing a 12% revenue increase and 24% SaaS revenue growth in continuing operations, underscore the success of this realignment.
What is the sales and marketing strategy of i3 Verticals?
How Does i3 Verticals Reach Its Customers?
i3 Verticals employs a robust sales channel strategy centered on its direct sales force and strategic partnerships. This approach is designed to effectively reach and serve its target markets, particularly within the public sector, education, and healthcare industries. The company’s i3 Verticals sales strategy focuses on delivering integrated software and payment solutions.
Direct Sales Force Engagement
The company’s direct sales teams are instrumental in engaging with complex public sector entities, educational institutions, and healthcare organizations. This direct interaction allows for a deep understanding of specific operational needs and the cultivation of long-term client relationships.
Strategic Distribution Partnerships
Beyond its direct sales efforts, the company also utilizes strategic distribution partnerships to broaden its market reach. These collaborations are key to expanding its footprint and accessing new customer segments, contributing to its overall i3 Verticals go-to-market strategy.
Acquisition-Driven Expansion
Strategic acquisitions are a cornerstone of i3 Verticals' growth, enhancing its sales reach and market penetration. These acquisitions not only add new product lines but also create immediate cross-selling opportunities for integrated payment processing within new client bases.
Shift to Software-Centric Solutions
Following the divestiture of its merchant services business, the company has intensified its focus on software-centric solutions. Integrated payment capabilities now serve as a competitive advantage within these offerings, aligning with its i3 Verticals business strategy for revenue generation.
Key Sales Channel Developments
The company’s sales channel strategy has evolved, with a notable shift towards software-centric offerings. This strategic realignment is supported by acquisitions that expand market presence and product portfolios, contributing to i3 Verticals customer acquisition efforts.
- Acquisition of a utility billing software company in April 2025 for $9.0 million expanded market reach and created cross-selling opportunities.
- Acquisition in fiscal year 2024 contributed inorganic revenue growth, demonstrating a 'build and buy' approach.
- Continued pursuit of acquisitions within the public sector vertical to enhance offerings and market presence.
- As of Q3 2025, 77% of RemainCo revenues are from recurring sources, indicating a successful shift towards stable, software-driven revenue streams.
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What Marketing Tactics Does i3 Verticals Use?
The marketing tactics employed by i3 Verticals are a sophisticated mix of digital and traditional methods, all driven by data to build brand recognition, generate leads, and boost sales within its specific industry sectors. The company prioritizes digital strategies, including content marketing that highlights its deep knowledge of vertical markets, search engine optimization (SEO) to ensure its niche solutions are easily found, and targeted advertising campaigns on platforms relevant to its audience.
Digital Content and SEO
i3 Verticals focuses on content marketing to showcase its vertical expertise and utilizes SEO to improve visibility for its specialized software and payment solutions.
Targeted Paid Advertising
The company runs paid advertising campaigns specifically on industry-specific platforms to reach its target B2B audience effectively.
Investor Relations as Marketing
Its investor relations section, featuring earnings call transcripts and presentations, acts as a key tool for communicating value to financially-literate stakeholders.
Data-Driven Customer Segmentation
The company leverages data to segment its customer base, allowing for tailored solutions and marketing messages for sectors like the public sector and education.
Personalized Sales Engagement
Sales teams use customer insights to personalize their approach, presenting highly relevant integrated software and payment solutions.
AI Integration as a Selling Point
The integration of AI into its products, such as an AI service agent for transportation, serves as a significant marketing innovation and a key selling point.
The i3 Verticals sales strategy is deeply intertwined with its marketing efforts, focusing on understanding customer needs and demonstrating how its integrated software and payment solutions address specific pain points. This approach is supported by strong SaaS revenue growth, with the company reporting 24% SaaS revenue growth in Q3 2025 and 23% in Q2 2025, indicating the effectiveness of its go-to-market strategy in driving customer acquisition and adoption of its high-margin software. The company's commitment to innovation, particularly through AI integration, further enhances its competitive positioning and marketing appeal. For a deeper understanding of how these strategies contribute to the company's financial health, explore the Revenue Streams & Business Model of i3 Verticals.
Key Marketing and Sales Drivers
i3 Verticals' success in revenue generation is driven by a combination of digital marketing, personalized sales, and technological innovation.
- Content marketing and SEO are central to its digital marketing approach for SaaS.
- Personalization in direct sales engagements is crucial for understanding customer needs.
- AI integration into products serves as a significant marketing innovation and selling point.
- Strong SaaS revenue growth, reaching 24% in Q3 2025, validates its business strategy.
- The company's sales process for software solutions emphasizes tailored value propositions.
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How Is i3 Verticals Positioned in the Market?
The company positions itself as a premier provider of integrated software and payment solutions, deeply embedded within the operational fabric of its key vertical markets. Its central message emphasizes empowering public sector, education, and select healthcare organizations to modernize systems and improve constituent services through essential enterprise software.
Vertical Market Specialization
The brand differentiates itself through profound vertical expertise, allowing for tailored solutions in sectors like Justice Tech, transportation, and public administration. This focus resonates with clients seeking enhanced operational efficiency.
Professional and Reliable Identity
The visual identity and tone of voice are professional and solution-oriented, reflecting a commitment to integrity and excellence in serving public sector needs.
Innovation and Digital Transformation
The company actively invests in new product development and AI initiatives to ensure its offerings remain at the forefront of governmental digital transformation, appealing to its target audience through innovation.
Market Reception and Financial Performance
Strong market reception is evidenced by consistent financial performance, including a Q3 2025 adjusted EBITDA margin for RemainCo of 24.5%, an increase from 23.3% in Q3 2024, underscoring an effective brand value proposition.
Brand consistency is maintained across all touchpoints, from direct sales engagements to investor communications and product development, reinforcing its strategic focus. This approach supports the Mission, Vision & Core Values of i3 Verticals and its overall business strategy. The company's i3 Verticals sales strategy is deeply intertwined with its understanding of customer needs in sales, aiming to foster strong customer acquisition and retention strategies. Its i3 Verticals marketing strategy leverages a digital marketing approach for SaaS and focuses on partnership strategy in sales to expand its reach.
Deep Vertical Expertise
The company's strength lies in its specialized knowledge of specific industries, enabling the creation of highly relevant and effective software solutions.
Commitment to Public Service Modernization
A core element of the brand positioning is the dedication to helping public sector entities modernize their operations and improve service delivery to citizens.
Reliability and Integrity
The brand projects an image of trustworthiness and dependability, essential qualities when serving government and public service organizations.
Focus on Operational Efficiency
A key promise to clients is the enhancement of operational efficiency through integrated software and payment solutions.
Adaptability and Future-Readiness
The company's investment in new product development and AI demonstrates a commitment to staying ahead of market shifts and technological advancements.
Strategic Alignment Post-Divestitures
Following strategic divestitures, the brand maintains consistency by focusing on its core strengths and redefined strategic direction.
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What Are i3 Verticals’s Most Notable Campaigns?
The company's key campaigns are strategically designed to refine its business focus and capitalize on market opportunities, particularly within the public sector. These initiatives are less about broad consumer advertising and more about targeted business development and operational restructuring.
Strategic Simplification Campaign
This campaign involved divesting non-core assets to concentrate on vertical market software. The sale of the Merchant Services business for approximately $438 million in September 2024 and the Healthcare RCM business for $96 million in May 2025 were pivotal. This move aimed to bolster profitability through higher-margin software and recurring revenue streams.
Public Sector Digital Transformation Initiative
This ongoing initiative targets the growing demand for modernized government services. It focuses on delivering integrated, mission-critical software solutions to state and local governments. The strategy leverages direct sales, strategic acquisitions, and product innovation, including AI integration.
Investor Relations and Stakeholder Communication
The 'Strategic Simplification Campaign' primarily communicated its objectives through investor relations, press releases, and earnings calls. This approach ensured key stakeholders were informed about the company's strategic pivot towards becoming a pure-play vertical market software provider.
Acquisition and Product Development for Public Sector Growth
As part of the 'Public Sector Digital Transformation Initiative,' the company acquired a utility billing software business for $9.0 million in April 2025. This acquisition expanded its offerings in the utilities sector, demonstrating a proactive approach to market expansion and product enhancement.
Financial Impact of Simplification
The strategic divestitures resulted in a strengthened balance sheet, achieving a net cash positive position exceeding $50 million by Q3 2025. This financial restructuring also led to a significant increase in recurring revenues, with SaaS revenue showing a 24% growth in Q3 2025.
Performance of Public Sector Focus
The 'Public Sector Digital Transformation Initiative' has driven substantial growth, with RemainCo revenues increasing by 12.4% in Q3 2025. This growth was fueled by 8% organic expansion and robust performance in SaaS and payments revenue streams.
AI Integration in Public Sector Solutions
The company is actively deploying artificial intelligence to enhance its public sector offerings. Examples include an AI service agent for transportation and an automated indexing module for ERP systems, serving as tangible proof points of its technological advancements.
Revenue Growth Metrics
The company's business strategy is showing positive revenue generation results, with consistent high single-digit organic revenue growth. Projections indicate an annual improvement in Adjusted EBITDA margins by 50 to 100 basis points, reflecting operational efficiencies.
Targeting Government Modernization
The 'Public Sector Digital Transformation Initiative' directly addresses the modernization needs of state and local governments. This focus aligns with the company's go-to-market strategy, aiming to provide essential software for efficient public service delivery.
Customer Acquisition in the Public Sector
The company's approach to customer acquisition in the public sector involves direct sales efforts and strategic acquisitions, as seen with the utility billing software purchase. This method ensures a targeted and effective expansion of its customer base within government entities.
i3 Verticals Sales and Marketing Strategy Overview
The i3 Verticals sales strategy is characterized by a focused approach on vertical markets, particularly the public sector. Its marketing strategy supports this by highlighting integrated software solutions and the benefits of digital transformation for government entities. The company's business strategy has evolved to prioritize recurring revenue streams and operational efficiency.
- The i3 Verticals go-to-market strategy emphasizes deep vertical expertise.
- i3 Verticals revenue generation is increasingly driven by SaaS and recurring payments.
- Customer acquisition for i3 Verticals involves direct sales and strategic partnerships.
- The i3 Verticals digital marketing approach for SaaS focuses on thought leadership and solution-based content.
Understanding customer needs in sales is paramount, with the company tailoring its software solutions to specific public sector requirements. This customer-centric approach, combined with a clear brand positioning as a provider of mission-critical software, underpins its sales and marketing alignment for growth. For a deeper understanding of the company's journey, refer to the Brief History of i3 Verticals.
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- What is Brief History of i3 Verticals Company?
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- What is Growth Strategy and Future Prospects of i3 Verticals Company?
- How Does i3 Verticals Company Work?
- What are Mission Vision & Core Values of i3 Verticals Company?
- Who Owns i3 Verticals Company?
- What is Customer Demographics and Target Market of i3 Verticals Company?
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