Northgate Information Solutions (parent of NGA Human Resources) Strengthens Capital Structure to Facilitate Growth

Reaches agreement with shareholders and lenders on new capital structure, significantly reducing company’s leveraged position

17 Nov 2015

Hemel Hempstead, UK – Today, Northgate Information Solutions (“NIS”) announced it has reached an agreement with its shareholders and lenders regarding a new capital structure, which will significantly reduce indebtedness and help further accelerate the growth of the Company. NIS is the holding company of NGA Human Resources, a leading global provider of payroll and HR software and services.

The renewed capital structure is being achieved through: (i) a full debt-for-equity swap of the subordinated debt: (ii) a full pay down of the existing senior debt, using the proceeds from the Northgate Public Services sale in December 2014 combined with £320m of new senior debt underwritten by the Investment Banking Division of Goldman Sachs and The Royal Bank of Scotland.

As a result of the debt-for equity swap, the Merchant Banking Division of Goldman Sachs (including advised funds) and funds advised by Park Square Capital will become the primary shareholders of NIS. Current shareholders KKR will remain as minority shareholders. The renewed capital structure will result in strongly reduced indebtedness and a strengthening of the company’s equity, enabling investments to support future growth.

Adel Al-Saleh, NGA and Northgate Information Solutions CEO, said:

“NGA has strong ambitions for the future and the new capital structure positions us well to pursue our growth plans. We are pleased with the outcome of the conversations with our shareholders and lenders. Over the past four years, we have been on a journey to streamline our portfolio, which included selling the Northgate Managed Services and Northgate Public Services businesses, and building strong foundations to grow NGA Human Resources. Today, we are focused on our clients more than ever and we continue to drive new, innovative ways of delivering payroll and broader HR solutions and services. Our renewed capital structure will help us facilitate growth and investments for the long term, in the interest of our clients, our employees and our partners.”

NGA Human Resources is a leading global provider of payroll and HR services.

The transaction is subject to the parties reaching definitive agreement as well as any required regulatory approvals being obtained.

 

For all media enquires 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

Instinctif Partners (Park Square Capital)
Paul Downes
Phone: + 44 20 7457 2843
Email: Paul.Downes@instinctif.com

NGA Human Resources
Michael Custers - SVP Strategy & Marketing
Phone: +32 496 277 221
Email: michael.custers@ngahr.com

Northgate Information Solutions website: www.northgate-is.com
NGA Human Resources website: www.ngahr.com