NEC acquires Northgate Public Services from private equity firm Cinven for £475m

Japanese giant NEC has acquired Northgate Public Services (NPS) from PE firm Cinven for £475m. Cinven will remain a stakeholder in the company with a board position. NPS is a software and services provider to the public sector in the UK and Australia and will retain its brand identity.

The deal follows a period of growth at NPS, catalysed by the appointment of Stephen Callaghan (pictured) as CEO in 2016.

New contracts have been secured with Government and State agencies such as the South Australia Housing Trust, Richmond and Wandsworth Councils and West Midlands Police.

NPS works with every police force in the UK and its ‘Safety' offering is expected to be a high growth area.

Its growing influence in the market caught NEC's eye, along with inroads made by NPS in its Canada, Australia and New Zealand markets.

According to NEC the deal delivers significant technological advantages.

NEC's biometric scanning and facial recognition products will be integrated into some of NPS's core software platforms, and its expertise in citizen access and smart cities will strengthen NPS's Government work.

NEC's global network will also enable the company to provide solutions and services into wider geographies such as North America, APAC and other regions.

These include solutions like the one that has screened eight million babies for hearing loss, and enabled around 200 housing providers to manage over two million homes.

The NPS leadership team remains in place and there are no plans for job cuts or redundancies following the transaction.

Callaghan said: "Our colleagues and leadership team have worked 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, while also expanding in new geographies and technology sectors.

"The increased financial strength, technical capability and market access support NEC provides will allow us to accelerate our growth plans considerably."

Takashi Niino, President and Chief Executive Officer of NEC, added:
"NPS's existing access into international markets are ideal for enabling NEC to accelerate business expansion, particularly for our biometrics and AI technology.

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