Public Services > Local Government

NEC acquires Northgate Public Services

David Bicknell Published 09 January 2018

Acquisition of public sector software and services provider for £475m said to offer platform for growth for both NEC and NPS


Public sector software and services specialist Northgate Public Services has been acquired by Japanese giant NEC.

The purchase, made from private equity firm Cinven for £475m, will actually see no change in Northgate’s name and it will continue to be known as Northgate Public Services. Cinven will continue to be a stakeholder with a Board position.

Explaining the move, Northgate Public Services (NPS) said it had been in a period of transformation following the appointment of chief executive Stephen Callaghan in 2016, and it had secured ‘substantial contracts’ with government and state agencies in the UK and Australia such as the South Australia Housing Trust, Richmond and Wandsworth councils, and West Midlands Police.

NPS said it has helped the NHS to screen eight million babies for hearing loss, enabled around 200 housing providers to manage over two million homes and has been contracted by 14 police forces to increase information exchange on victims and offenders.

It said its “leading market access” within the UK was one of the major drivers behind NEC’s acquisition of the company, together with the “bridgeheads secured by NPS into Canada, Australia and New Zealand.”

It said, “With 95% of UK local authorities either currently working with or having previously worked with NPS, the Company’s insight into what NEC views as a compelling growth market is unrivalled. Similarly, NPS works with every police force in the UK and the Company’s ‘Safety’ offering is expected to be a high growth area for NPS.”

NPS said its leadership team will remain in their roles following the acquisition, with no plans for any job cuts or redundancies as a result of the transaction.

Chief executive Stephen Callaghan said, “This is a very exciting time to be part of Northgate Public Services. Our colleagues and leadership team have worked incredibly hard over the past two years to get the Company into great shape operationally and financially, with the result that NPS is a highly attractive asset to NEC. This transaction represents a step-change in our ability to serve our clients.

“Combined with NEC’s business, we will now be able to offer a wider suite of services and software to our existing client base, whilst also expanding in new geographies and technology sectors.  I’d like to stress that we see this as simply the beginning of our next phase of development. The increased financial strength, technical capability and market access support NEC provides will allow us to accelerate our growth plans considerably and I am enthusiastic about our future prospects.” 

Takashi Niino, president and chief executive of NEC said, “This is a highly strategic acquisition for NEC and is a win-win transaction for all parties which will provide new and exciting opportunities for both businesses. NPS’ excellent reputation and existing access into international markets are ideal for enabling NEC to accelerate business expansion, particularly for our world leading biometrics and AI technology.

“In turn, this transaction provides NPS with the opportunity to develop its proven and market-leading software across our growing international client base in North America, APAC and other regions.”

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