Northgate Information Solutions bought by private equity firm for £1.1bn

Northgate Information Solutions has been acquired by private equity firm Kohlberg Kravis Roberts (KKR) for an all share valuation of £1.1bn.

UK group Northgate, which makes software for the public services and HR markets, had its shares delisted from the London Stock Exchange (LSE) last week after an agreement was reached with KKR to take control of 100% of its shares.

KKR, which took full ownership of Alliance Boots in July last year, underwent an investigation with several other private equity firms into whether it ought to be more transparent and tightly regulated.

Chris Stone, chief executive officer at Northgate Information Solutions, said the acquisition provided an opportunity to expand the business. “KKR’s investment approach makes them an ideal partner for Northgate, as we share a common business philosophy for long-term value creation.”

Plans for the HR division of Northgate, NorthgateArinso, include continued geographic expansion, with new offices being opened in Russia, Turkey, Portugal, Mexico and Norway. Increased investment in existing operations will see a focus on its HR outsourcing, systems integration and software businesses.

Northgate employs more than 6,000 staff and operates in 46 countries across five continents.

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