View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Software
July 14, 2017

Japanese technology giant NEC mulls £900m bid for UK’s Civica

Tokyo-based technology firm NEC weighs up takeover bid of British company.

By CBR Staff Writer

Japanese technology company NEC is among three private firms showing interest in a £900million takeover bid for British software group Civica.

An auction for Civica, one of the UK’s biggest public sector software providers, began several weeks ago drawing initial offers from three firms: BC Partners, Berkshire Partners and the Swiss-based Partners group.

Civica provides outsourcing services to more than 300 local authorities, blue light organisations and government agencies around the world.

Some of its customers include the Environment Agency, which uses the software to plan a response to major flooding incidents. Civica’s software also manages one million automatic vehicle number plate checks on a daily basis for West Yorkshire Police, helps housing providers deal with their tenants and provides a platform to manage £43billion of pension funds.

Japanese technology giant NEC mulls £900m bid for UK’s Civica

NEC provides a wide range of systems and software services for the public and private sectors. Thecompany’s most recent contract included the provision of its facial recognition system to the UK’s South Wales Police force and also one to integrate internal systems for the city of Lisbon.

It is unclear how serious NEC’s interest in the company is, but it has been reported that the company has hired advisors to work on an offer.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

A spokesperson for NEC said that the company “is always considering a wide range of business possibilities, but nothing has been decided at this time.”

If the Japanese firm proceeded with a deal to buy the UK-based company, it would be seen as a vote of confidence in the UK technology sector during a period of wider economic uncertainty.

Other companies across Japan expressed their concerns about what implications Brexit could have, on the deal, with car manufacturers warning of potentially adverse consequences for their UK operations.

READ MORE: UK tech sector flies high following Brexit with record investment

Civica is seen as an appealing auction within the market for business software, with one insider, telling Sky news, that initial bids had reinforced the value that had previously been created under the ownership of OMERS Private Equity,

OMERS hired Goldman Sachs to look at a potential sale of Civica earlier in the year, after taking note of premium valuations being paid for other companies in the sector, which are similar.

The Canadian firm bought Civica in 2013 for £390m, according to Thomson Reuters LPC data.

A takeover of Civica would bring a second change to the company’s ownership in the last 10 years. Previously, it was a public company before being taken private by 3i in 200 in a £200million deal, before being bought by OMERS in 2013.

Topics in this article : ,
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.