Northgate Information Systems (NIS) has declined to comment on reports it is selling off its public sector arm and insisted its customer focus remains "unwavering".
Citing two sources familiar with the matter, Reuters claims Northgate owner KKR – a US private equity firm – has appointed Rothschild to sell the firm's public sector arm.
The sources said Northgate Public Services (NPS) will be auctioned to private equity firms later this year and could fetch up to $600m (£361m).
NPS is one of two NIS divisions, the other being its NGS Human Resources arm. Northgate Managed Services was part of NIS until February this year when Capita snapped it up for £65m.
NIS and KKR remained tight-lipped on the matter.
"It is not KKR or Northgate policy to comment on rumours in the market," the duo said in a joint statement sent to CRN.
"We will continue to maintain our clear and unwavering focus on providing the customers with the world-class service that they have come to expect."
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