Cinven buys Northgate Public Services

Cinven has acquired Northgate Public Services. The seller was Northgate Information Solutions. No financial terms were disclosed. Based in the UK, NPS is a provider of integrated software, outsourcing and IT services for the public sector.


LONDON–(BUSINESS WIRE)–Northgate Information Solutions (NIS) today announced the sale of its Public Services division to Cinven, a leading European private equity firm, for an undisclosed amount.

Northgate Public Services (NPS) is an integrated software, outsourcing and IT services business with deep experience in the public sector. NPS helps organisations in the UK and around the world to deliver more efficient and effective public services, working with local and central governments, health providers and public safety bodies.

Northgate Public Services is headquartered in Hemel Hempstead, Hertfordshire in the UK. It employs more than 1,500 people in the UK across 10 offices and more than 750 people internationally including in its software development centre in Mumbai.
In FY14 NPS grew 7.2% in revenue and 6.9% in EBITDA, at £181.0m and £42.0m respectively. Most recently, NPS delivered its 12th consecutive quarter of growth in both the top line and bottom line.

Adel Al Saleh, Group Chief Executive, Northgate Information Solutions, said:
“Today’s announcement puts both Northgate Public Services and NGA Human Resources in the best possible position to evolve and thrive. They have operated as separate divisions for a number of years in recognition of the different markets they serve. Both companies will now have 100% focus on their chosen markets and we will work with Cinven on a seamless transition.”

David Meaden, Chief Executive of Northgate Public Services, said:
“Working with Cinven will further fuel our ambition to innovate and grow. It is a huge vote of confidence in the strength of our business and our people. Public finances are under pressure all over the world and we have unique expertise in helping organisations to meet this challenge.”

David Barker, Partner at Cinven, said:
“Northgate Public Services has a strong client base and great potential for growth. Its people have delivered great results for clients at a time when budgets are shrinking but demand for public services is growing. It has further demonstrated its value by pushing into new markets in the UK and internationally. We look forward to building on its successes to date. Our initial focus will be on ensuring a smooth transition for staff and clients.”

About Northgate Public Services
Northgate Public Services is a software and outsourcing business that has worked with the public sector since 1969. Its clients include government departments and agencies, local authorities, the police and emergency services, hospitals and public health bodies, transport providers and utilities. It also works with housing providers in the UK and internationally.

About Cinven
Cinven is a leading European private equity firm focused on building world class businesses.
Its funds invest in six sectors – Business Services, Consumer, Financial Services, Healthcare, Industrials and Technology, Media and Telecommunications (TMT). Cinven has been actively investing in the TMT sector. Its recent investments from its

Fifth Fund include:
Visma, a leading Nordic business software services group;
HEG (formerly Host Europe Group), a leading provider of hosting and domain services;
Ufinet (formerly Gas Natural Fenosa Telecomunicaciones), the fibre network operator in Spain and Latin America.
In TMT, Cinven has most recently realised its investments in:
Ziggo, the Dutch cable operator, generating total proceeds of €1.7 billion and a total money multiple of 2.8x
Numericable, the French cable operator, generating total proceeds of €1.7 billion and a total money multiple of 4.7x.

Cinven operates a pan-European network with offices in Guernsey, London, Paris, Frankfurt, Milan and Luxembourg. It also has an office in Hong Kong which provides portfolio support to its European companies expanding into Asia. It will be opening offices in Madrid and New York in 2015.

Cinven funds acquire businesses that have European headquarters or substantial European operations and which require an equity investment of €100m or more.

Its European focus and expertise are complemented by an ability to capitalise on global growth opportunities through its Asia office.
Cinven Limited and Cinven Capital Management (v) General Partner Limited are authorised and regulated by the GFSC.
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