LexisNexis Risk Solutions: A Strategic Play in the GovTech Boom as Amy Simon Steers the Ship

The government technology (GovTech) sector is on fire. With global IT spending projected to grow 9.3% in 2025 and AI investments surging at a 29% CAGR, the demand for digital public services is no longer a trend—it's a necessity. At the heart of this transformation is LexisNexis Risk Solutions, a RELX Group subsidiary, which is leveraging its expertise in fraud prevention, identity verification, and data analytics to dominate a high-growth niche. But the real catalyst for excitement? The recent appointment of Amy Simon as Head of Labor and Workforce Solutions. Let's break down why this move could supercharge LexisNexis' position in the GovTech gold rush.

The Amy Simon Factor: Policy Meets Tech

Amy Simon isn't just another executive. She's a former Acting Assistant Secretary at the U.S. Department of Labor, a pandemic fraud expert, and a founder of a policy advisory firm. Her resume is a masterclass in understanding the pain points of state agencies: aging systems, regulatory complexity, and the urgent need to modernize. By bringing her on board, LexisNexis isn't just hiring a leader—it's acquiring a bridge between public policy and cutting-edge technology.

Simon's mandate is clear: lead a cross-functional team to deploy LexisNexis' identity, fraud prevention, and data solutions to state agencies. This isn't just about selling software—it's about solving real-world problems. For instance, her work on pandemic unemployment fraud solutions and her firsthand experience as a fraud victim add a deeply human dimension to her strategy. She's not just selling tools; she's selling trust. And in an era where public trust in government is fragile, that's a differentiator.

LexisNexis: A Hidden Gem in GovTech

LexisNexis Risk Solutions may not be a household name, but it's a powerhouse in the shadows. The company holds a 1.32% market share in the risk management sector, a modest figure in a crowded field but one that belies its leadership in critical subcategories. For example, it's been ranked #1 in identity verification by Juniper Research and #1 in financial crime and compliance by Everest Group. These accolades aren't just trophies—they're proof of the company's ability to tackle the most pressing challenges in government operations.

What sets LexisNexis apart? Its Digital Identity Network, which analyzes over 104 billion transactions annually, and its LexID® technology, which links disparate data sets to identify fraud patterns. These tools have already delivered tangible results: a 5-state pilot of the National Accuracy Clearinghouse saved $116 million annually. That's not just efficiency—it's a blueprint for scaling.

The GovTech Gold Rush: Why Now?

The government tech sector is in a golden age. With interest rate cuts on the horizon and a 15% average annual growth rate since 2020, state and local agencies are racing to digitize. LexisNexis is perfectly positioned to capitalize on this. Its recent acquisition of IDVerse in 2025 has turbocharged its identity verification capabilities, a critical need as governments grapple with synthetic identity fraud and AI-generated scams.

But competition is fierce. Sift Science, Avalara, and others are vying for market share. However, LexisNexis' focus on government-specific solutions—like its Special Investigations Unit (SIU) for fraud pattern detection—gives it an edge. While private-sector players chase broad AI tools, LexisNexis is tailoring its offerings to the unique workflows of public agencies, a niche few can replicate.

The Investment Angle: RELX's Playbook

RELX Group, LexisNexis' parent company, has been a steady performer, with a 7% underlying revenue growth in 2025 driven by AI and data analytics. But the real question is: How does LexisNexis' GovTech push translate to RELX's stock?

RELX has traded in a range of $120–$140 in 2025, reflecting investor confidence in its diversified portfolio. However, the company's exposure to the high-growth GovTech sector is still underappreciated. With LexisNexis securing contracts with the U.S. Department of Defense and expanding its U.S. government client base (80% of its 433 global customers), there's room for upside.

Here's the kicker: GovTech is non-discretionary. Unlike consumer tech, governments can't cut spending on fraud prevention or identity verification. This creates a sticky revenue model, with recurring contracts and long-term margins. For RELX, this means a steady stream of cash flow from a sector that's only accelerating.

The Bottom Line: Buy the Story, Not Just the Stock

LexisNexis Risk Solutions is more than a tech company—it's a mission-critical partner for governments navigating a digital-first world. Amy Simon's appointment isn't just a strategic hire; it's a signal that LexisNexis is all-in on the GovTech revolution. With its leadership in fraud prevention, identity verification, and policy-driven innovation, the company is poised to outperform as demand for secure, efficient public services skyrockets.

For investors, the message is clear: RELX is a buy. The stock's current valuation doesn't fully reflect the explosive potential of its GovTech division. As interest rates fall and digital modernization accelerates, LexisNexis—and by extension, RELX—could become a cornerstone of the next phase of tech growth.

In a world where trust is the new currency, LexisNexis is printing it. And that's a bet worth making.