Northgate in sale talks
Public sector specialist admits discussions could lead to offer for the entire firm
Software and services firm Northgate Information Solutions has become the latest UK channel firm to reveal it is in talks that could lead to a sale of the company.
According to a statement issued yesterday, the VAR has received an approach which may or may not lead to an offer for the entire firm.
The announcement comes just 14 months after Northgate terminated discussions regarding a sale of the firm (CRN, 27 October). It was thought the firm had received several acquisition offers at the time, including from private equity firm General Atlantic.
“The Board of Northgate Information Solutions announces that it has received an approach which may or may not lead to an offer being made for the whole of the issued share capital of Northgate,” the firm stated.
It added that “a further announcement will be made in due course”.
Northgate’s share price rallied strongly as the announcement was made. However, the VAR’s valuation has since plunged by about 17.5 per cent amid speculation the bid will not come to fruition.
Northgate, which recently acquired Belgian business process outsourcing provider Arinso, saw annual sales rise 6 per cent to £350m.
The news came just a day after ‘buy-and-build’ storage VAR Xploite divulged it is in talks that could lead to an offer for all or part of the firm (CRN, 12 December).
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