Private equity firm snaps up Northgate

Shares surge, investors line pockets

By Kelly Fiveash • Get more from this author

Posted in IT Channel, 21st December 2007 14:56 GMT

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Kholberg Kravis Roberts and Company has inked a £593m deal to buy UK HR software outfit Northgate Information Solutions Plc.

News of the private equity acquisition pushed shares in the firm up by nearly 44 per cent on the London Stock Exchange this morning.

Investors can expect a big 95 pence a share payout from the sale, which is a 60 per cent increase on the company's closing price on 11 December, the day before it revealed it was in possible takeover talks.

Analysts had previously downgraded the firm's 2008 prospects following its first half results, which saw Northgate's CEO defending its "comfortable" trading position.

The Hemel Hempstead-based firm, which punts much of its software and IT business to the public sector, has nearly 6,500 staff and operates out of 46 countries. ®

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