Northgate nabs Anite public sector arm

Private equity backer allows VAR to splash out £54.3m on services firm's public sector unit

Deal will expand Northgate's reach into police sector

IT services firm Anite has offloaded its public sector business to VAR Northgate Information Solutions for more than £50m.

Northgate has agreed to stump up £54.3m to acquire Anite Public Sector and the deal is now subject to a settlement of £3.8m owed by Anite to Anite Public Sector and a subsequent working capital adjustment. Northgate's public equity backer Kohlberg Kravis Roberts & Co (KKR), which acquired the reseller earlier this year, claim this demonstrates its desire to bolster the company's public service business through acquisition.

Northgate indicated the deal will help it become the UK's top provider of social care and document management services and would allow it to expand its reach into the criminal justice and police markets.

David Meaden, chief executive of Northgate Public Services, said: “The acquisition of Anite Pubic Sector is great news for Northgate. It demonstrates how and why KKR’s investment approach makes them an ideal partner for Northgate. We share a common business philosophy for long-term value creation.

“We are committed to supporting public service excellence, building and developing innovative partnerships with our clients to transform public services and place the citizen’s needs at their heart. This deal will help us to provide them with the enhanced services and solutions which form an integral part of that transformation.”