Cinven sells NPS to trade for £475m

The sale ends a three-year holding period for Cinven, which acquired NPS from KKR-backed Northgate Information Solutions in December 2014.

DC Advisory led the off-market sales process, initiated in October 2017 with the goal of securing an Asian strategic acquirer.

The transaction value of £475m represented an entry mutiple of 12x the most recent EBITDA figure, according to a source close to the situation.

NPS reported underlying EBITDA of £35.1m from £163.5m in sales for the financial year ending on 30 April 2017, a reduction from the £41.5m of EBITDA from a turnover of £182.5m in the previous year. However, the company noted that this reduction was the result of deliberate withdrawal from non-core activities to focus on software-as-a-service revenues, which increased from 53% to 61%.

Previous funding
Cinven carved out NPS from KKR portfolio company Northgate Information Systems in December 2014. The value was not disclosed at the time but is thought to be approximately £360m.

The transaction was the 10th investment from the Fifth Cinven Fund, a €5.3bn, 2012-vintage buyout vehicle.

Company
Originally founded as Computer Machinery Company in 1969, Hemel Hempstead-based NPS is a provider of software and outsourcing for the public sector. The company's clients include around 400 local authorities, all of the UK's police forces, social housing providers and NHS hospitals. The group employs 2,000 staff worldwide.

People
Cinven – David Barket (partner).
Northgate Public Services – Stephen Callaghan (CEO).

Advisers
Vendor – DC Advisory (M&A); KPMG (financial due diligence); Freshfields Bruckhaus Deringer (legal); Deloitte (tax); OC&C (commercial due diligence).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Exits
• UK / Ireland
• Technology
• Cinven
• Trade sale
• DC Advisory Partners
• KPMG
• Freshfields Bruckhaus Deringer
• Deloitte