Allison Poliniak: Great. Thank you.
Neil Hunn: Thank you.
Operator: Thank you. And the next question comes from Terry Tillman with Truist.
Terry Tillman: Yes. Good morning. Can you all hear me, gentlemen?
Neil Hunn: We can hear you perfect.
Jason Conley: Yes, all good.
Terry Tillman: Wonderful. Happy Friday, Neil, Jason, and such. Maybe the first question, it’s almost technically two questions, but I’m going to call it 1.5 questions, is actually back on Deltek, one of your biggest businesses, if not biggest business on the app software side. I’m just curious on the relative health and demand. Somebody earlier asked about macro, but how the government side is performing versus private sector side? And the second part of that first question is it seems like something with Replicon, and I think you said it’s about $70 million. You could have some pretty good revenue synergy opportunities. And how do you think about that $70 million business, kind of, unleashing that product into that large Deltek installed base? And then I have a follow-up.
Neil Hunn: So we’ll call that two questions, 50 degrees. But the Deltek demand, as we talked about in the prepared remarks, our performance was solid across both government contracting and private sector. We are encouraged by the pipeline build in the quarter for Q4 and early ‘24 in government contracting. There definitely was a little bit of a lull or an air pocket in government contracting relative to the debt ceiling. And so it was nice to see activity get back to normalize or maybe slightly better than normalized activities relative to early pipeline build, so that was encouraging to see. You’ve got to see how that plays out, for sure. Replicon, you know, we really like this bolt-on. As we said, it’s the largest bolt-on we’ve done at $450 million, $370 million net of the tax benefit.
It’s time entry without attachment to an ERP. So time only is a highly demanded solution in the PS world. It is not sold today in government contracting. And so we have not underwritten into a revenue synergy opportunity. That’s not part of the $70 million or the $2 million that we talked about. But it is certainly the expectation over time is to get Deltek takes this product in other core market of government contracting.
Terry Tillman: Got it. And thanks for being generous, yes, I guess this technically is the third question. Then on the idea of the M&A pipeline and you talked about you’re just kind of working through opportunities and bespoke situations, et cetera. But compared to like 90-days ago, would you suggest that there’s more — it’s more actionable on the bolt-ons versus the potential platform deals. Just maybe a temperature gauge on the stack ranking of the two types.
Neil Hunn: Yes. So it’s been an interesting 90-days. So we continue to be active. Our pipeline still skews more towards bolt-ons for sure. More broadly in the market over the last 90-days, we are encouraged by the fact that there are a couple of sizable deals private that did not happen, because the buyer universe rejected the seller’s expectation on value. And so we view that as in the deal ultimately did not consummate. So we view that as actually an encouraging sign around as an early indicator that valuations are going to pull in to being a more normalized with cost of capital. So we’re encouraged by that. But still, our pipeline leans into the bolt-on opportunities.
Terry Tillman: That’s great. Thank you.
Jason Conley: Yes, I mean, I would say. Yes, [Multiple Speakers] are down dramatically year-over-year. And so there’s just a lot of assets that, at some point, need to go. And it’s been 1.5 years now, so we think it’s getting closer.
Terry Tillman: Thanks.
Operator: Thank you. And the next question comes from Christopher Glynn with Oppenheimer.
Christopher Glynn: Thanks. Good morning.
Neil Hunn: Good morning.
Christopher Glynn: I wanted to touch on foundry. Curious if there’s any risk of any followed or perturbations from labor strike risk? And also, if you could revisit the comments on the transition plan for that?
