Acquisition
16 Julho 2003 - 4:02AM
UK Regulatory
RNS Number:6020N
Northgate Information Solutions PLC
16 July 2003
16th July 2003
Northgate Information Solutions plc
("Northgate" or "Company")
Acquisition of blue 8 Technologies Limited
Northgate Information Solutions (NIS LN) "Northgate", a leading supplier of
software applications and outsourcing solutions to the public sector, human
resources and corporate markets, today announces the acquisition of blue 8
Technologies Limited "blue 8" from ISIS Equity Partners plc, blue 8's
management team and certain employees, for #9.3 million on a debt free basis. In
addition, Northgate is paying #1.1 million for blue 8's cash at the date of
acquisition. The acquisition is expected to be earnings enhancing in its first
full year of ownership before the amortisation of goodwill.
With more than 120 customers, blue 8 is based in Nottingham and has 54
employees. blue 8 provides location and citizen based IT systems for the full
range of 999 emergency services, police, fire and ambulance, throughout the
country in critical, 24x7 environments.
blue 8's market-leading technologies, Call Agent Support, Compass and Business
Intelligence are utilised by two thirds of all 999 emergency service call
centres. blue 8 is the only Home Office, nationally approved, location and
citizen based software supplier under NSPIS (the National Strategy for Police
Information Systems).
The same solutions are increasingly being used by local government to integrate
information from many different sources into a single databank 'view' of each
citizen and address, facilitating the enhanced delivery of public services.
blue 8 has grown substantially over the last two years. In the year ended 31st
December 2002, blue 8 had a turnover of #4.6m (December 2001: #4.0 million), and
EBITA of #0.8 million (December 2001: #0.4 million). In the six months to 30
June 2003 the company generated revenue of #2.7 million (June 2002: #2.0
million), and EBITA of #0.5 million (June 2002: #0.2 million). On the date of
acquisition blue 8 has net assets of #0.7 million including #1.1 million of
cash.
The acquisition of blue 8 represents a further step in Northgate's strategy to
strengthen its offering to the criminal justice and local government markets.
There are substantial synergies between blue 8's capabilities in intelligent
location and citizen based support systems for the public sector, and
Northgate's offerings for the criminal justice and local government markets.
This acquisition is an excellent strategic fit with Northgate's business
strategy to reinforce its position as a leader in criminal justice and local
government transformation.
Northgate is anticipating incremental revenues from being able to introduce blue
8's technology into Northgate's significant local government customer base.
Northgate also anticipates that there will be additional revenues from the
extension of the current blue 8 customer base, with the additional resources at
Northgate's disposal, and by working with and extending the existing blue 8
sales channel. Finally, there will be a limited amount of synergies from the
reduction in external advisory costs and from the reduction of certain
duplicated central functions.
Commenting on the acquisition, Chris Stone, Chief Executive of Northgate said:
"The significance of this acquisition goes beyond blue 8 's current activities
which, although highly profitable are just the beginning. By linking blue 8 's
location and citizen based software to Northgate's core applications and back
office systems we can offer a greatly enhanced product set to our customers in
police, the emergency services and local government. With its customer base of
forty-seven police forces, twenty-six fire and eighteen ambulance service
customers, blue 8 is a very welcome addition to the Group."
Ends
Enquiries:
Northgate Information Solutions
Sandy Halse - 01442 273 000
Brunswick Group Limited
Sarah Tovey /Conor McClafferty - 020 7404 5959
About Northgate Information Solutions (www.northgate-is.com)
Northgate Information Solutions is a leading supplier of software applications
and outsourcing solutions to the public sector, human resources and corporate
markets. Headquartered in Hemel Hempstead, Northgate employs 1,200 staff and has
more than 2,000 customers across the UK and Ireland. Northgate works closely
with many corporate organisations, as well as approximately 30% of the UK's
local authorities, and 90% of its police forces. Northgate's focus is on fully
understanding application-specific processes, enabling organisations to increase
their business process efficiency. Equally, Northgate manages customers' key
systems, providing a broad range of outsourced solutions - available at client
sites or hosted at its own secure data centre.
Northgate Information Solutions plc is listed on the London Stock Exchange. For
further information visit the Northgate Information Solutions Portal at
www.northgate-is.com
Notes to Editors:
Further Information On blue 8
blue 8 is the UK's market-leading supplier of location and citizen based
technology. It was founded in 2001 following a management buyout from SER
Systems. The company's location and citizen based system is the de facto
solution for the emergency services and is currently used by a third of all
command and control centres in the UK. blue 8 is the only Home Office approved
supplier of location based software for NSPIS (National Strategy for Police
Information Systems) and is widely respected for its predictive analytical
solutions.
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