Another one bites the dust
As public spending slows, the private sector has quickly assessed that not all the suppliers grown fat in the boom years will survive.
In public sector software, for example, the UK’s specialists suddenly looked especially exposed. So they’ve been looking for shelter. Here’s a quick list of recent deals:
- Northgate Info Solutions acquired by KKR;
- Civica (having itself bought Comino) acquired by 3i;
- IDOX acquires CAPS Solutions;
- [and today] IBS Open Systems goes to Capita.
We have the sense that IBS gave up as others rushed out the door. The price achieved, for all the talk of a 65% premium, was less than it had been trading at six months ago. But the City had given up on it even earlier [see post, http://www.credo-group.com/comment/archives/340], so IBS probably had little choice.
Whatever the merits of the deal for IBS shareholders, you’d rather be in their shoes than Anite, still unloved and without a home after serial attempts to sell itself. With so much activity going on around them, being left on the shelf must be galling.
