Northgate Information Services (NIS) has today lost another leg of its group as it sold its Northgate Public Services (NPS) branch to European private equity firm Cinven for an undisclosed amount.
In February 2013 outsourcing giant Capita bought Northgate Managed Services (NMS) for £65m and now the only remaining part of the NIS trio is NGA Human Resources.
NPS delivers software and related services to UK public sector markets, such as local government, government agencies and public safety.
NPS's revenues grew by 7.2 per cent for the 12 months to 30 April 2014 to £181m and EBITDA by 6.9 per cent to £42m.
David Barker, partner at Cinven, said: "We are very pleased to be working with the Northgate Public Services management team. NPS is a highly cash generative and defensive software business with market-leading positions in the UK public sector.
"We are excited to have the opportunity to invest in NPS as a standalone business and grow further into attractive niche markets, such as healthcare screening and the police, where the company has a good existing foothold," he added.
Since it was founded in 1977, Cinven has made a regular string of acquisitions, including the web hosting firm, Host Europe Group, last July for around $666m (£427.90m).
David Meaden, chief executive at NPS said: "Working with Cinven will further fuel our ambition to innovate and grow and is a huge vote of confidence in the strength of our business and our people."
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