‘Magic Circle’ law firm Linklaters has underlined its strength in the software and information technology sector by acting on three major IT deals over the past month with a total value of
‘Magic Circle’ law firm Linklaters has underlined its strength in the software and information technology sector by acting on three major IT deals over the past month with a total value of more than USD3.25bn.
On March 5 the GBP593m recommended cash offer by Kohlberg Kravis Roberts for Northgate Information Solutions, a provider of specialist information technology services to the human resources, local government, education and public safety markets was completed.
Linklaters has been advising Northgate since it first informed shareholders that it was in discussions with KKR last December, having advised on the company’s key transactions in recent years.
On March 20 Cidron Services, a specially incorporated vehicle owned by funds advised by Scandinavian private equity house Nordic Capital, made a EUR1.1bn bid for Finnish IT services company TietoEnator. Linklaters advised Nordea Bank Finland, Swedbank and Pohjola Bank as arrangers of the bank facilities supporting Cidron’s offer. White & Case advised Cidron and Nordic Capital.
Finally, on March 28 Linklaters advised Lloyds TSB, Royal Bank of Scotland, Bank of Ireland and National Australia Bank as arrangers of the debt facilities supporting 3i’s GBP190m bid for Civica, a UK-listed IT company operating primarily in the public sector IT market. Travers Smith advised 3i on the transaction.
‘Deal activity in the IT sector has managed to defy the general state of the markets in recent times,’ says Bruce Bell, a banking partner who advised on the TietoEnator and Civica deals. ‘Many of the deals have been private equity-backed public-to-privates, and Close Brothers recently estimated that 15 per cent of the total software and IT services sector had been de-listed in the past year.
‘We are delighted to have been able to again show the strength of our expertise in the sector in helping some of our key clients to get deals done in an incredibly challenging financial and transactional environment.’
