UK > Japan based NEC Corporation to acquire UK based Northgate Public Services Limited (NPS) for GBP 475 million ($677.8 million)

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Accelerating NEC’s international business, NEC Corporation is set to acquire UK based IT services company NPS for GBP 475 million ($677.8 million) from leading international private equity firm Cinven. The expected acquisition completion date is end of January 2018.

Working mainly in the UK, NPS develops software and services for the public sector and employs approximately 1,400 software engineers in the UK and India. NPS client base include British police, government organizations, local police forces, tax collection offices, social security offices and housing authorities.

Capitalizing on biometrics technologies, that include face recognition and fingerprint recognition, NEC’s international safety business has been evaluated as the world’s most accurate and it also provides its services to more than 30% of state police force in the US.

NEC as a proven track record of providing its 700 systems in over 70 countries around the world and in the future NEC aims to leverage artificial intelligence (AI) to quickly detect fraudulent requests or applications across its public institutions client. NEC sees a significant market in the UK as the government is promoting digital strategy to improve administrative service and cost reduction by bringing services online. NEC mainly works in areas such as identification and immigration control.

According to  Takashi Niino, President and CEO, NEC Corporation:

“We are proud to have Northgate Public Services, one of the UK’s leading technology companies, joining the NEC Group. With this acquisition, NEC aims to support and strengthen NPS’ technologies for police operations, establish new safety solutions based on a common business platform, and to further develop international markets largely focused on countries within the Commonwealth.”

Stephen Callaghan, CEO, Northgate Public Services also said the following about the acquisition:

“This is a very exciting time to be part of Northgate Public Services. Our colleagues and leadership team have worked incredibly hard over the past two years to get the Company into great shape operationally and financially, with the result that NPS is a highly attractive asset to NEC. This transaction represents a step-change in our ability to serve our clients.”

“Combined with NEC’s business, we will now be able to offer a wider suite of services and software to our existing client base, whilst also expanding in new geographies and technology sectors.  I’d like to stress that we see this as simply the beginning of our next phase of development. The increased financial strength, technical capability and market access support NEC provides will allow us to accelerate our growth plans considerably and I am enthusiastic about our future prospects.”

NEC and NPS will collaborate after the acquisition and develop and provide safety solutions by combining both companies’ technologies and the companies will mainly take advantage of NEC’s biometrics technology to enhance identity authentication during police operations and administrative procedures. NEC’s face recognition, intrusion detection, suspicious item detection and other image analysis techniques will also be highly useful on real- time detection of suspicious individuals and abnormalities. NEC will also promote NPS’s solutions for police department outside of the UK.

About NEC Corporation

Headquartered in Japan and established in 1899, NEC Corporation engages in the integration of information technology (IT) and network technologies worldwide. Employing around 107729 employees worldwide, NEC operates in mainly four segments : Public, Enterprise, Telecom Carrier, and System Platform.

About Northgate Public Services Limited (NPS)

Founded in 2014, Northgate Public Services Limited provides software and services worldwide. Headquartered in the UK, the company offers self-service software, which has a real time connection to the back office systems to provide customer services; and automation software to streamline enforcement and payment processes and it also offers various solutions for the housing market.