Advised Anite, an IT solutions and services company, on its disposal of its Anite Public Sector division to Northgate 
– Anite’s Public Sector business comprises two separate divisions: local government and SIS
– The local government unit is a market leader in providing solutions to certain areas of the UK local government, such as document management and social care. Its customer base includes 70% of UK local authorities
– The SIS unit is a supplier of secure information solutions to the police, home affairs, criminal justice and defence markets in the UK
– Anite Public Sector employs around 610 staff
– Northgate Information Solutions (wholly owned by Kohlberg Kravis Roberts & Co) provides specialist software, outsourcing and information technology services to the local government and public safety markets
– Northgate has approximately 4,500 large / medium customers and approximately 10,500 small / medium enterprise customers worldwide
– Headquartered in the UK, Northgate employs over 6,000 staff and operates in 46 countries across 5 continents
– The sale of Anite Public Sector marks another phase in Anite’s transformation to become the leading supplier of industry specific IT solutions in the wireless and travel sectors
– The disposal will provide liquidity to help fund some of the growth opportunities that Anite plc currently sees in its core markets
– The deal is part of KKR’s roll-up strategy, aimed at positioning Northgate as the leading solutions provider to the UK public sector market
– The acquisition enables Northgate to deliver enhanced services to its local government clients and become the undisputed leading solutions provider in the revenue and benefits, housing, social care and document management markets
– Arma Partners has a long-standing relationship with Anite plc; the disposal of Anite Public Sector is the fourth transaction on which Arma has acted as its exclusive financial advisor
– Arma Partners’ ran a full process, contacting European and US strategic partners as well as private equity firms
–Arma Partners spent time with the management teams of both divisions in order to fully understand the business and carefully position each division against a backdrop of a checkered past
– Despite the difficult market conditions, Arma Partners helped to maximise the value of the business, with proceeds to Anite being significantly above a recent sum of the parts valuation of the business by one of Anite’s brokers