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NEC moves towards Civica acquisition: Sky News
Posted on Friday, 14 July 2017 10:56
Japanese information technology services provider NEC is mulling a potential takeover of Civica, a UK-headquartered specialist system and outsourcing company, according to Sky News.
Without identifying its sources, the broadcaster noted that the suitor is preparing a GBP 900.00 million approach for the business.
It also cited an industry source as stating that BC Partners, Berkshire Partners and Partners Group have all submitted initial approaches.
Sky News noted that NEC is said to have appointed advisors to the potential deal, although the broadcaster added that it remains unclear how serious its interest in Civica is.
A sale of the UK firm has been on the cards since April, when the broadcaster reported that owner OMERS Private Equity was looking to offload it with a view to raising in excess of GBP 500.00 million and had hired Goldman Sachs to advise on the process.
However, it cited insiders as saying that a divestment would only go ahead if suitors offer a sufficiently high price.
Civica has completed a few acquisitions in recent years, having picked up IPL Group, SFW and Abritas in 2016 alone.
The company’s offering includes business-critical software, digital products and managed and outsourced services within the government and national security, housing, healthcare and education markets, among others.
Its technology includes legal care management, drug administration recording and contract and income management products.
Civica posted revenue of GBP 267.70 million for the year to 30th September 2016, up from GBP 234.10 million in the preceding 12 months.
Gross profit for the period totalled GBP 221.80 million, compared to GBP 181.90 million in the year to the end of September 2015.
NEC’s most recent purchase closed in June of last year, when it paid an undisclosed consideration for a 51.0 per cent stake in Japanese communication system equipment manufacturer Takasago.
© Zephus Ltd