Date published: 01.09.08 - not release date

Northgate announces acquisition of Kendric Ash

Northgate Information Solutions, a leading provider of innovative technology solutions to the public services and human resources markets, today announced the acquisition of Kendric Ash, a leading transformation partner to the public sector, for an initial net payment of £9.2m, a deferred payment of £0.5m, and a further payment of up to £4.5m subject to various performance conditions being satisfied over a 2 year period.

The company will be integrated into Northgate’s Public Services division, and the acquisition provides Northgate with a premier partner in delivering innovative high-performance and guaranteed-outcome in-sourcing solutions which place continuous improvement at their heart. The new service aims to enable public authorities to transform their services to the upper levels of excellence and efficiency and to sustain this by the end of the contract period.

The acquisition confirms Northgate’s continuing expansion into strategic areas of public service delivery, including pioneering new models of working collaboratively with public sector bodies, building on Northgate's track record of developing innovative incremental partnerships. These new models are tackling the challenges facing public sector organisations to meet efficiency targets and deliver personalised public services to individual citizens.

Over the last two months, Northgate has significantly added to the strength of its Public Services senior management team by the announcements of the appointments of Joe Bradley as its new MD of Local Government and Social Housing, Brendan Brown as Business Services Director and John Hollister as Business Development Director, who is spearheading the company’s move into larger public sector deals.

Kendric Ash’s portfolio strengthens Northgate’s existing capability aimed at ‘changing for the best’ and delivering excellence to citizens. With its geographic breadth, depth of experience and wealth of resources, Northgate will now provide clients with sustainable performance partnerships on a nationwide basis aimed at delivering a quick step-change in performance, providing public services with the opportunity to make sustainable savings faster.

Working alongside an organisation’s employees, using knowledge and skills transfer as an integral part of performance improvement, clients will benefit from Northgate’s unique high-performance and guaranteed-outcome arrangement, which provides flexible contracts and links fees to performance.

Dave Meaden, MD of Northgate Public Services, said today, “This acquisition builds upon our strategy of acquiring organisations which complement our current capabilities. I am delighted to welcome the new team to Northgate. Like us, they are passionate about public services and are committed to continuous innovation, collaboration and community wellbeing which places the citizen at the heart of public services.

“Public services and the utilities are constantly under pressure to deliver value for money and effective services to their citizens. The private sector has to deliver new forms of partnership and innovative models of working with the public sector. These must offer flexibility and greater control for the sector, add value and save cost whilst delivering high-performing services.

“We are committed to building innovative partnerships with the public sector, and are now in a position to offer comprehensive business improvement services for our clients depending on their needs at any given time. Our sustainable performance solution builds upon our work in developing incremental partnerships. It offers clients greater control, more flexibility, guaranteed outcomes, lower risk and heightened rewards, helping to make a real difference to people’s lives through the intelligent use of both people and technology in problem-solving and the provision of public services.

“The combined strength, knowledge and experience of Northgate and Kendric Ash will provide public services with a partner that is committed to the public ethos and delivering sustainable, responsive and personalised services which place the individual citizen at their heart.”


For further info:

Fellows’ Associates
Kathy Sutton
0207 849 3403/ 07966 890401
ksutton@fellowsassociates.com

Naomi Stevenson
0207 849 3508/ 07966 890403
nstevenson@fellowsassociates.com

1.Northgate Information Solutions is a leading provider of innovative technology solutions to the public services and utilities markets. Northgate's task is to enhance public value through the intelligent use of people and technology and to share in the economic and social benefits that this brings.

2.In the UK, Northgate works with four out of five local authorities and every police force. Its systems are used in the management of over 1.5 million local authority and housing association properties out of a total of approximately 4 million in England; in the administration of more than £17 billion of revenues and benefits; and in electoral administration systems covering over 18 million people. Founded in 1969, the company has over 3,300 employees.

3.Northgate is committed to developing new models of working with the public sector, building upon its track record of incremental partnership. These models include new forms of service provision partnership, new methods of sharing risk, and new ways of collaboration to deliver shared services and localised and citizen-centred services.

4.Kendric Ash is a rapidly growing corporate service partner to the public services in the UK. Nearly one in six of all local authorities have benefited from its services. The key objective of the company is to transform services to the upper quartile levels of excellence, and to develop the client’s capacity to sustain such improvement over a contract period which is typically three years. Founded in 1999, the company is ISO 9001:2000 accredited and holds the Investor in People ‘Profile’ award.

5.The consideration is payable in the form of cash and/or loan notes.

6.Accompanying photo: Northgate acquires Kendric Ash to deliver sustainable performance partnerships. [From left to right: Mike Butler, formerly MD of Kendric Ash, who will now head up Northgate’s work in performance partnerships, and David Meaden, MD of Public Services, Northgate Information Solutions]