Private equity firm Kohlberg Kravis Roberts & Co. (KKR) has acquired Northgate Information Solutions, taking the London-based company private. The $2.2 billion sale comes less than a year after the software and outsourcing provider had acquired Dutch HRO provider ARINSO.
Northgate’s shares were delisted from the London Stock Exchange on March 7.
“KKR’s investment approach makes them an ideal partner for Northgate, as we share a common business philosophy for long-term value creation. The opportunities for us to expand the business under their ownership are extremely exciting,” said Northgate CEO Chris Stone.
According to the company, it plans to strengthen its HRO, systems integration, and software businesses through organic growth and a program of strategic acquisitions. The plans include continued geographic expansion, with new offices being opened in fast-growing markets, as well as increased investment in existing operations.
“The acquisition of ARINSO last year was transformational,” Stone added. "Now operating as a single global company, our HR division is leading the way in the global HR market. Under our new ownership, we will continue to drive delivery excellence in all areas.”
Northgate employs more than 6,000 and operates in 46 countries across 5 continents. It has approximately 4,500 large/medium customers and approximately 10,500 small to medium enterprise (SME) customers worldwide.
Last May, Northgate acquired ARINSO for $514 million in one of the biggest mergers in the HRO industry. It enabled the company to expand its global reach to North America as well as throughout Continental Europe.