U.K.-based Northgate Information Solutions, a provider of software, IT services, and HRO solutions, said it plans to acquire Netherlands-based HRO provider ARINSO in a two-step deal worth a total of $514 million. The deal is subject to Northgate shareholder approval.
“This transaction represents a unique opportunity for Northgate and represents a step change in our growth and development. At a stroke, it will transform our successful human resources division into a world-class business, with market-leading products that can serve the HR needs of corporate clients on five continents, from the largest multi-nationals to SMEs,” said Northgate CEO Chris Stone. “Northgate and ARINSO are an excellent fit in terms of products, technologies, geographies and clients.”
The deal will unfold in two steps: Northgate will first acquire a 60-percent interest in ARINSO International NV from ARINSO CEO Jos Sluys—whose holdings total more than nine million shares—at $34 a share in cash and Northgate stock. The company said it plans to complete the first purchase by August 1. Afterward, the company plans to acquire the remaining outstanding shares.
Sluys would receive $310 million, and the remaining shareholders would get approximately $204 million.
ARINSO, which has operations in Europe, the Americas, and Asia, has a global HR platform with more than 2,500 employees operating in 27 countries. ARINSO has built HR and payroll solutions for one in five of the Fortune 500 companies, serving more than six million employees, the company said.
“We operate in a market where three elements really matter: references, technological edge and size,” said Sluys. “We already have a very strong reputation with leading employers and have been recognized for our expertise in SAP HR and payroll platforms. With Northgate, we now have the opportunity to make a quantum leap in terms of market share. The entire management team is confident that Northgate is the right partner at the right time.”