After rumours of acquisition interest from the likes of NEC, Civica Group has been snapped up by investment management firm, Partner Group, in a deal worth £1 billion ($1.64 billion).
The UK-headquartered software, digital solutions and outsourcing services provider was acquired by Canadian pension fund firm, OMERS Private Equity, in 2013 for £390 million.
An auction of Civica reportedly kicked off several weeks ago, with Sky News reporting that NEC and Berkshire Partners were among those bidding for the company, with the Swiss asset management firm eventual coming through as the winning bidder.
While the deal sees a wholesale ownership shift for Civica, the company’s CEO has maintained that it will be business as usual for its 3,700-strong workforce and thousands of customers around the world.
“This is a very positive development to support our ongoing strategy for the benefit of customers, employees and other stakeholders,” Civica CEO, Wayne Story, said. “Under the ownership of Partners Group, it will be an enhanced version of business as normal led by the existing management team, and we remain committed to our strategy and to the long term development of Civica.
“We believe our continued commitment to customers and our sustained investment in our people and our products, along with the hands-on support of our new investor, provides an excellent foundation for the future success of the business,” he said.
Partners Group said it will support the existing Civica management team and its ongoing strategy, helping build on the company’s current organic growth opportunities combined with complementary acquisitions to enhance product and service capabilities further.
“We have been impressed by Civica's track record of long-term growth,” Partners Group Europe private equity managing director, Bilge Ogut, said. “We see our investment as an opportunity to back a high-quality market leader in a sector with evolving customer needs and the potential to increase scale through select acquisitions.
“We are excited to work with Civica under the leadership of Simon Downing and Wayne Story and to continue to grow the business,” he said.
Founded in 2002 and headquartered in London, Civica specialises in business-critical software and technology-based outsourcing services to both public sector organisations and to commercial organisations in highly regulated sectors.
The company has a diverse customer base, including local and central governments, healthcare providers, housing associations, schools, and police and fire services, serving 2,000 major customers in 10 countries, including Australia and New Zealand.
In the local market, Civica has picked up a number of recent public sector wins, including a $6.3 million deal with the Lake Macquarie City Council in NSW to switch out the council’s Oracle eBusiness Suite, and a $103 million contract from the Victorian Government awarded late last year for the replacement of certain legacy software systems.