Private equity firm Kohlberg Kravis Roberts has acquired the then quoted Northgate Information Solutions for GBP1.1bn. Northgate is a leading provider of HR solutions in the UK.
Private equity firm Kohlberg Kravis Roberts has acquired the then quoted Northgate Information Solutions for GBP1.1bn. Northgate is a leading provider of HR solutions in the UK. The acquisition was completed by a scheme of arrangement effective on March 5, 2008, allowing KKR to control 100 per cent of Northgate shares.
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 (a company controlled by certain funds advised by KKR), and Northgate Information Solutions, made on December 21, 2007.
Chris Stone, chief executive officer at Northgate Information Solutions, comments: ‘KKR’s investment approach makes it 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 exciting.’
For NorthgateArinso, the Northgate 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 comments. ‘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 excellence in all areas.’
Northgate Information Solutions is a market leader in providing specialist software, outsourcing and information technology services to the human resources, local government, education and public safety markets.
Northgate, which is now privately owned, employs over 6,000 staff and operates in 46 countries across 5 continents. It has 4,500 large/medium customers and approximately 10,500 small to medium enterprise customers world wide. The many corporate organisations Northgate works closely with include over a fifth of Fortune 500 clients, also 90 per cent of the UK local authorities, and all of the UK’s police force.
