Cinven backs Northgate deal with 285 mln stg debt, say sources-Reuters

(Reuters) – European private equity firm Cinven‘s acquisition of the public-sector division of British software firm Northgate Information Solutions will be backed with 285 million pounds ($434 million) of debt financing, banking sources said on Monday.

Cinven agreed in December to buy Northgate Public Services (NPS), whose clients include Britain’s police, local government agencies and National Health Service, from U.S.-based private equity firm KKR for 320 million pounds.

Goldman Sachs, Bank of Ireland and Credit Agricole have provided a leveraged loan financing to back the acquisition, which will be offered to institutional investors in a syndication process that is expected to launch in January, the sources said.

The financing comprises a 235 million pound first lien loan, a 25 million pound revolver and a 25 million pound acquisition facility, the sources said.

Cinven declined to comment.

NPS is the smaller of two divisions within Northgate Information Solutions. The other is NGA Human Resources, formerly known as NorthgateArinso, which focuses on human resources software for clients across Europe, the United States and Asia.