2000s
In 2000, the company was rebranded to shed the old loss-making image, and the company changed its name to Northgate Information Solutions—the name of a small software house that the old MDIS company had purchased years earlier. Through "re-focusing" and the loss of about two-thirds of the original MDIS staff, the business finally became profitable again in 2001. Through the sale of the health business unit, the company raised capital for acquisitions.
In 2002, Northgate acquired Prolog (payroll outsourcing services). In 2003, the company acquired CaraPeople (payroll outsourcing), blue8 (location and citizen-centric IT systems for emergency services), Hays CSG (data management information systems (police) and consulting) and PWA Group (HR applications). In 2004, the company acquired Rebus (previously Peterborough Software), one of its main competitors (HR Group, which provides HR and payroll services), and CIM Systems (communication technologies for control room environments). As a result of its larger capitalisation, it became listed on the London Stock Exchange FTSE 250 Index. In 2005, the company acquired Sx3 and MVM Holdings, but a number of the old Northgate staff now felt that they were working for Sx3 due to the integration of their senior managers. In June 2007, Northgate bought ARINSO to create NorthgateArinso (NGA). NorthgateArinso in 2011 and 2012 was acknowledged in HR and payroll outsourcing by industry analysts such as Gartner, IDC and Everest Research.[3]
On Sunday, 11 December 2005, an explosion and fire at the Buncefield oil depot, located next to the company’s Hemel Hempstead offices, destroyed the head office complex. [citation needed] Hemel Hempstead–based staff were subsequently instructed to report to offices in Oxford and Peterborough. The company’s share price fell on the first trading day following the incident but recovered later the same day. Managed services systems were transferred to alternative facilities, including a site in Hounslow, using off-site backups as part of the company’s disaster recovery arrangements. [citation needed] These systems included managed networks supporting hospitals in East Anglia. All customer payrolls were processed on schedule during this period. Following the incident, chief executive officer Chris Stone spoke publicly on commercial disaster recovery.
In October 2006, the company announced that it had received an unsolicited takeover approach, which did not proceed. In December 2007, Kohlberg Kravis Roberts (KKR) agreed to acquire the company for £593 million.
Private equity giant Kohlberg Kravis Roberts (KKR) acquired Northgate in November 2007 for £593 million. Northgate chairman Ron Mackintosh said the offer from KKR was good value, and he predicted a bright future for the firm under private-equity ownership.[4] The acquisition was completed in March 2008, after which Northgate Information Systems plc was delisted from the London Stock Exchange.[3] In April 2008, the company ranked forty-seventh in Britain’s Top Employer 2008.
In November 2008, Northgate Information Solutions UK Ltd acquired Anite Public Sector Holdings Ltd from Anite plc. Convergys sold its Human Resources Management line of business to NorthgateArinso in 2010.
