23 Mar 2016
Hemel Hempstead, UK – Today, Northgate Information Solutions (“Northgate”) announces it has implemented its agreement with shareholders and lenders regarding a new capital structure, which strengthens its balance sheet significantly, and helps accelerate the growth of the Northgate Group. Northgate is the holding company of NGA Human Resources, the leading global provider of payroll and HR software and services.
The refinancing package includes a conversion of subordinated debt into equity and a full repayment of outstanding senior debt using proceeds from the sale of Northgate Public Services in December 2014 and from new £395m term facilities, arranged by Goldman Sachs International and The Royal Bank of Scotland.
As a result of the agreement with shareholders and lenders, the Merchant Banking Division of Goldman Sachs (including advised funds) and funds advised by Park Square Capital are now the majority shareholders of NGA Human Resources and its parent company Northgate. Northgate’s current shareholder, KKR, stays on as a minority shareholder.
Adel Al-Saleh, CEO of NGA Human Resources and Northgate Information Solutions, said: “This is a major step forward for NGA, our clients, our employees, and our partners. This transaction helps us facilitate growth and investments for the long term. Our focus today is more than ever on our clients and on developing integrated and highly innovative HR and payroll solutions.”
James Reynolds, Managing Director of the Merchant Banking Division of Goldman Sachs, said: “We are pleased to become a majority shareholder of the Northgate Group. We believe the HR and payroll solutions market holds great potential and we are looking forward to further reinforcing an established market leader.”
###
For all media enquiries contact:
Finsbury (KKR)
Victor Mallet
Phone: +44 20 7251 3801
Email: victor.mallet@finsbury.com
Goldman Sachs
Joseph Stein
Phone: +44 20 7774 2523
Email: joseph.stein@gs.com
Greenbrook Communications (Park Square Capital)
Charlotte Balbirnie, Alex Jones
Phone: + 44 20 7952 2000
NGA Human Resources
Caroline Garstang
Phone: +44 7814 589 425
Email: caroline.garstang@ngahr.com
Northgate Information Solutions website: www.northgate-is.com
NGA Human Resources website: www.ngahr.com
