Japanese giant NEC gobbles Brit IT firm Northgate for £475m

Private equity owner waves goodbye

11 Reg comments Got Tips?

Japanese multinational NEC has splashed £475m on UK-based IT provider Northgate Public Services.

NEC bought the company from private equity biz Cinven and the acquisition is due to close this month.

Takashi Niino, NEC chief exec, said the business hopes to build on Northgate's technologies for police operations, "establish new safety solutions based on a common business platform, and to further develop international markets largely focused on countries within the Commonwealth".

More than 90 per cent of Northgate's business is in Blighty.

In its preliminary full-year results for 2017, Northgate posted pre-tax profits of £75m, down from £83m the previous year, on revenue of £667m, up 7.9 per cent the previous year.

Last year NEC turned over ¥2.66tn (£17.4bn).

Northgate CEO Stephen Callaghan said the business has 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".

According to analysts TechMarketView, Northgate Public Services was the 18th largest software and IT services provider in the public sector last year.

Northgate had been under the ownership of Cinven since December 2014, when it parted ways with then KKR-owned sister company NGA Human Resources.

The business has been running since 1969 and employs approximately 1,400 software engineers throughout the UK and India. ®

SUBSCRIBE TO OUR WEEKLY TECH NEWSLETTER


Keep Reading

Don't be fooled, experts warn, America's anti-child-abuse EARN IT Act could burn encryption to the ground

Wait, a proposed law tackling the sexual abuse of kids and they name it... the EARN IT Act? Seriously?

Hundreds charged in internet's biggest child-abuse swap-shop site bust: IP addy leak led cops to sys-op's home

23 kids saved, alleged scumbag-in-chief already in jail

Sharp gobbles NEC as Japan's display giants team up to take on Europe and North America

Terms not revealed, but hopes are high that consolidation will be a good thing

Alphabet, Apple, Dell, Tesla, Microsoft exploit child labor to mine cobalt for batteries, human-rights warriors claim

Updated Woke tech giants sued for 'knowingly benefiting from ... the cruel and brutal use of young children'

NEC insists its face-recog training dataset isn't biased, but refuses to share details of Neoface system with UK court

Magical Black Box of Suspects to Arrest is updated annually, says firm

Baby Diesel? Little d'Artagnan? There is another child of Musk in the world

Play The Register's naming game for the kid who will definitely be getting an electric go-kart

Microsoft wields ML to catch child predators, city drops 7-year facial-recognition experiment after no arrests...

Roundup Plus: Hollywood wants to revamp the film business with AI, Nvidia improves StyleGAN

Cisco: We warned months ago our sales would be a bit glum, we did not disappoint, and don't expect changes soon. PS: We axed Cisco Live Oz

The aristocrats! The aristocrats!

Biting the hand that feeds IT © 1998–2020