We are delighted to announce completion of the management buy out of Northgate Public Services (‘NPS'), a leading provider of software, outsourcing and IT services to local government and public sector organisations.
Northgate Public Services is headquartered in Hemel Hempstead, Hertfordshire. 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.
Cinven's TMT team, led by David Barker, regards NPS as an attractive investment on the basis of the company's:
- well-placed market positioning with a variety of niche software applications across the UK public sector;
- stable revenues resulting from the embedded and vital nature of its software products within its customers;
- well diversified business with a customer base across local and central government, police and healthcare;
- potential growth into other related areas given NPS' investment in a modern, Software-as-a-Service (‘SaaS') eligibility platform which is applicable across the public sector in the UK and internationally. As a result, public sector organisations can migrate at low risk to flexible and modern IT solutions.
David Meaden, Chief Executive of Northgate Public Services – which was previously part of Northgate Information Solutions, owned by KKR – said Cinven’s acquisition of the division was “a huge vote of confidence in the strength of our business and our people”.
“For many years, we’ve worked hand-in-hand with local authorities, police forces, health and housing providers, as well as government departments, to help them keep communities safe and thriving. Public finances are under pressure all over the world and we have unique expertise in helping organisations to meet this challenge. “
“We now have the power and the opportunity to help even more organisations to transform the service they provide to the public and get ready for the challenges to come.”
Andrew Coll, Chief Financial Officer commented:
“Liberty Corporate Finance provided great advice and guidance throughout all stages of the transaction. Mick is very experienced and professional, successfully navigating a range of stakeholders to reach an excellent outcome for all parties. We would highly recommend them as advisors in such a process."