Belfast Telegraph

Capita's Northgate buy-out completed

By Clare Weir

UK outsourcing and recruitment firm Capita has completed a buy-out of Northern Ireland firm Northgate Managed Services Ltd.

Capita said it had agreed to acquire the business for an enterprise value of £65m net of tax relief (£69m gross).

The business, now branded Capita Managed IT Solutions, will be part of Capita IT Services, but it is understood that there would be no impact on current employment levels.

Northgate Managed Services is a Newtownabbey-based registered subsidiary of English parent company, Northgate Information Solutions group, which in turn is a subsidiary of a similarly named company registered in Luxembourg. The local company was formerly known as Sx3, or Service and Systems Solutions and at the moment employs around 1,000 people across the UK.

The company has established itself as a key supplier of IT and cloud-based systems, providing managed services for 1,200 schools – including every school in Northern Ireland – and over 60 health organisations.

The company is also the largest IT provider for utilities in Northern Ireland.

Late last year, Northgate Managed Services clinched a number of high-profile deals.

In December, it won a £220,000 contract to deliver cloud-based technology to the new E-ACT Free School in north London and two months earlier won a £1.14m contract to create a new IT system in a four-year contract with St Aldhelm's Academy in Poole. Other UK clients include Wolseley UK, NSPCC and NHS Scotland.

The firm is currently rated 46 among Northern Ireland's list of Top 100 companies and last year won the Excellence in Service to Business accolade at the Belfast Telegraph Business Awards, which recognised Northgate's business to business relationships.

Capita is the largest business process outsourcing company in the UK. Major clients include the BBC, the Post Office, the Home Office and National Rail.

Welcoming the acquisition, John Chambers, director of Capita IT Services, said: "Capita's core focus is providing business proc-ess and IT outsourcing capabilities to its clients in the UK and Ireland.

"Not only does this acquisition complement Capita's existing services and solutions, but it also extends its network of UK-wide delivery centres."


Belfast Telegraph