HR software company Northgate buys majority stake in international outsourcing company Arinso

HR software company Northgate has bought a majority stake in international outsourcing company Arinso.

The purchase is the first step towards a complete takeover of Arinso, which is expected to complete by August and values Arinso at 378m euros (£257m).

Arinso is a leading provider of SAP-based HR services, including HR outsourcing, technology integration services and strategic consulting. It employs more than 2,500 staff in 27 countries.

Chris Stone, Northgate’s chief executive, said: “This transaction represents a unique opportunity for Northgate, and represents a step change in our growth and development.”

Jos Sluys, Arinso’s chief executive, added: “We already have a very strong reputation with leading employers and have been recognised for our expertise in SAP HR and payroll platforms. With Northgate, we now have the opportunity to make a quantum leap in terms of market share.”

Samad Masood, analyst at technology consultancy Ovum, said on paper the deal was a good match because the companies were complementary.

“In the big picture, this acquisition is about building a ‘technology agnostic’ HR services business, and in the longer term we would not be surprised if Northgate/Arinso consider targeting large clients that are not SAP-centric,” he said.

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