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Northgate Information Solutions acquired by KKR
Northgate HR
11-Mar-2008 - [Northgate HR]

~ private equity firm acquires leading specialist software and outsourcing business at an enterprise valuation of £1.1billon ~
 
 

Private equity firm Kohlberg Kravis Roberts & Co (KKR) has acquired Northgate Information Solutions (Northgate). The acquisition is implemented by means of a scheme of arrangement which has become effective on March 5, 2008 following which KKR controls 100 per cent of the shares of Northgate. Northgate’s shares were delisted from the London Stock Exchange on 7th March 2008. This followed the announcement of the recommended acquisition by the Boards of NIS Acquisitions Limited (a company controlled by certain funds advised by KKR) and Northgate Information Solutions plc, made on December 21, 2007.

Chris Stone, chief executive officer at Northgate Information Solutions, commented: “KKR’s investment approach makes them an ideal partner for Northgate, as we share a common business philosophy for long-term value creation. The opportunities for us to expand the business under their ownership are extremely exciting.”

For NorthgateArinso, the HR Division, the plans are to strengthen the human resources outsourcing, systems integration and software businesses, both through organic growth and a programme of strategic acquisitions. The plans include continued geographic expansion, with new offices being opened in markets such as Russia, Turkey, Portugal, Mexico and Norway, as well as increased investment in existing operations.

“The acquisition of Arinso last year was transformational,” Stone commented. “Now operating as a single global company, our HR division is leading the way in the global Human Resources market. Under our new ownership, we will continue to drive delivery excellence in all areas.”

The deal completed in accordance with the original timetable at an enterprise valuation of £1.1 billion.

(280 words)

NOTES TO EDITORS

About Northgate Information Solutions

Northgate Information Solutions (Northgate) is a market leader in providing specialist software, outsourcing and information technology (IT) services to the human resources, local government, education and public safety markets.
 
Northgate, which is privately owned, employs over 6,000 staff and operates in 46 countries across 5 continents.
 
Northgate has approximately 4,500 large/medium customers and approximately 10,500 small to medium enterprise (SME) customers world wide. The many corporate organisations Northgate works closely with include over 20 per cent of fortune 500 clients, 90 per cent of the UK local authorities and all of the UK’s police forces.

For further information, please contact:                                
Kelly Desinioti or Lisa Gillingham at LEWIS