Northgate Information Solutions acquired by KKR

Private equity firm acquires leading specialist software and outsourcing business at an enterprise valuation of £1.1bn

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 5th March following which KKR controls 100% 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 Northgate HR & Arinso, 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 fast growing markets, as well as increased investment in existing operations.

According to Stone “The acquisition of Arinso last year was transformational,” he 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 £1.1bn.

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