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Did you spot the oriental takeaway earlier this week, when the Japanese based tech giant NEC snapped up Northgate, supplier of Social Housing, Benefits & Revenues and other local authority systems, in the UK & worldwide?
It was described as “TOKYO--(BUSINESS WIRE)--NEC Corporation (NEC; TOKYO:6701) today announced the acquisition of UK-based IT services company Northgate Public Services Limited (NPS), accelerating the expansion of its international safety business. NEC is buying NPS for GBP 475 million from leading international private equity firm Cinven. This acquisition is expected to be completed by the end of January 2018”.
Following completion of the transaction, the Company will continue to be named Northgate Public Services. Cinven will remain a stakeholder in the Company with a Board position.
Established in 1969, Northgate Public Services develops software and services for the public sector, mainly in the UK, and employs approximately 1,400 software engineers throughout the UK and India. NPS works closely with the British police and government organizations to deploy its business platform across a broad client base that includes local police forces, tax collection offices, social security offices and housing authorities*.
* Source – Business Wire
NEC has been buying up companies across the world, many associated with public services, so this acquisition must complement that portfolio. Many of Northgate’s existing non-UK customers have been focused in British Commonwealth territories, such as Australia and Canada. This provides opportunities for NEC to use that as an international springboard.
The press release mentioned, “this transaction represents a step-change in our ability to serve our clients” as well as “we will now be able to offer a wider suite of services and software to our existing client base”.
I speak to many of the existing UK Northgate customer base. Its clear to me, at least within the social housing customer base, many would like to see more focus on the former, than the latter. It will be interesting how this works for my contacts, be sure (as ever) to keep me posted. Happy as ever to blog about developments etc, here.
Lets hope more additional capital will be coming into the SocialHousing products. Roger Birkinshaw has told me investment funding was coming already.
It would be good for this to be translated into new enhanced features and modules for existing clients and some new procurement wins, in 2018 and beyond.
Read the Business Wire press release here.
Keep on top of all the Northgate news here.
Related Post: Effective Comms can start with just a doodle or a cartoon..
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The Vapours - Turning Japanese.
(c) Tony Smith, Acutance Consulting www.acutanceconsulting.co.uk 07854-655009
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