Consolidation among technology suppliers to the social housing sector looks set to continue with the planned acquisition of Anite Public Sector Holdings by Northgate Information Solutions, which includes Anite’s local government and secure information systems businesses, for around £54 million. The planned deal comes four months after the acquisition of Northgate by US private equity firm Kohlberg Kravis Roberts.
David Meaden, chief executive, Northgate Public Services, said, “The acquisition of Anite Public Sector is great news for Northgate. This deal demonstrates our new owner KKR’s commitment to building and developing Northgate’s public service business, of which social housing is an integral part.”
Meaden told Housing Technology, “Our social housing partners can not only expect business as usual. They should anticipate a continuously improving service as a result of enhanced investment, economies of scale and the combination of our key strengths. We strongly believe in placing the needs of our customers first. So once we have completed the deal, we will make the right strategic decisions in consultation with them. The deal will bring considerable benefits to our clients, assisting Northgate to broaden the range of services it offers to clients, to strengthen and enhance its relationship with them, and to provide them with a wider number of strategic services.”
In a letter to Anite staff, Steve Rowley, chief executive, Anite plc, said, “Consolidation in the public sector continues and we believe that customers will be best served by larger and more dedicated suppliers. We therefore decided that the interests of our customers, employees and shareholders would be best served by selling our local government and secure information solutions businesses to Northgate. The decision to select the buyer was not taken lightly. It was imperative that they had the standing, experience and market understanding to enable them to support our customers in their day-to-day complex operations.”
In accordance with standard statutory procedures, the sale is subject to approval by Anite shareholders and the Office of Fair Trading. It is anticipated that completion will take place around the end of September 2008.
