Capita Agreed to Acquire Northgate Managed Services from Northgate Information Solutions |
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Lynsey Parkes 14-Feb-2013 - [Northgate Managed Services] Capita has agreed to acquire Northgate Managed Services Limited (NMS) from Northgate Information Solutions for an enterprise value of £65 million net of tax relief (£69m gross). This comprises £22 million payable in cash consideration and, in addition, the assumption by Capita of a pension deficit of £17m net of tax relief (£21m gross) and finance leases for equipment used in the business of £26 million. NorthgateArinso (NGA), the leading global HR technology and services provider, and Northgate Public Services, the software and services provider for Public Sector, are excluded from the transaction.Northgate Managed Services provides cloud-based, infrastructure solutions and specialist managed services to public, private and third sector businesses. NMS made a pro forma operating profit for its financial year to 30 April 2012 of £10 million on a turnover of £141.6 million. Headquartered in Newtownabbey in Northern Ireland, NMS has approximately 1,000 employees and a local IT services delivery centre. Adel Al Saleh, Group Chief Executive, Northgate Information Solutions, said: “Northgate Managed Services has achieved significant new business wins over the last few years. The decision to sell NMS to Capita is the right strategic decision for both NMS customers and employees. Northgate Information Solutions will continue to build on the leading positions in Human Resources technology solutions and services, and Public Sector software solutions and technology services. We are well positioned to continue to grow NorthgateArinso (NGA) and Northgate Public Services.” Paul Pindar, Chief Executive of Capita plc, added : “As the pressure mounts for businesses to gain efficiency, technology has a growing role to play. By combining NMS’s managed IT services with Capita’s complementary business process and IT outsourcing capabilities, Capita will enhance its offering to clients and enable them to transform the way they do business.” Completion of the transaction is subject to approvals from the necessary parties. -ends- Media Enquiries RLM Finsbury Nina Suter+44 (0)20 7251 3801 For more information on Capita IT Services visit www.capita-its.co.uk |
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