More local government consolidation
Not consolidation of local authorities themselves - the public sector doesn’t change its structures just because they cease to work - but more IT company match-ups in the face of falling demand.
Over the weekend, Anite’s sold its public sector IT division to Northgate. The price, we’re told, diluted earnings for Anite - and it can’t have been easy for KKR-backed (and debt-fuelled) Northgate to raise finance in these markets - so you can imagine that Anite’s hand was forced.
Local government IT is consolidating, and consolidating fast. Here’s the updated tally of deals in the last 12 months:
- Northgate Info Solutions acquired by KKR;
- Civica (having itself bought Comino) acquired by 3i;
- IDOX acquires CAPS Solutions;
- IBS Open Systems goes to Capita;
- Northgate buys Anite Public Sector.
