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February 14, 2013

Capita to acquire Northgate Managed Services

Northgate describes decision to sell NMS to Capita as "the right strategic decision for both NMS customers and employees"

Capita has said it plans to acquire Northgate Managed Services Limited (NMS) from Northgate Information Solutions for £65m.

NMS, which provides cloud-based, infrastructure solutions and specialist managed services to public, private and third sector businesses, made a pro forma operating profit for its financial year to 30 April 2012 of £10 million on a turnover of £141.6 million.

Commenting on the acquisition, Paul Pindar, Chief Executive of Capita, said: “As the pressure mounts for businesses to gain efficiency, technology has a growing role to play. By combining NMS’s managed IT services with Capita’s complementary business process and IT outsourcing capabilities, Capita will enhance its offering to clients and enable them to transform the way they do business.”

Adel Al Saleh, Group Chief Executive, Northgate Information Solutions, said: “Northgate Managed Services has achieved significant new business wins over the last few years. The decision to sell NMS to Capita is the right strategic decision for both NMS customers and employees. Northgate Information Solutions will continue to build on the leading positions in Human Resources technology solutions and services, and Public Sector software solutions and technology services. We are well positioned to continue to grow NorthgateArinso (NGA) and Northgate Public Services.”

Headquartered in Newtownabbey in Northern Ireland, NMS has approximately 1,000 employees and a local IT services delivery centre.

The £65m cost comprises £22 million payable in cash consideration and, in addition, the assumption by Capita of a pension deficit of £17m net of tax relief and finance leases for equipment used in the business of £26 million.

NMS customers include Hartsbrook E-ACT Free School in Tottenham, North London, St. Aldhelm’s Academy in Poole, Christian Aid, NHS Fife and the Leicester Area Wide ICT Service.

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