Business Weekly - Cambridge, UK

Northgate specialises in the public safety, local government and human resources markets and will be well complemented by MVM, a specialist in the development and sales of software to the local government and utilities sector.

MVM currently employs approximately 190 staff, operating from nine offices across the UK, with a significant presence in Huntingdon and Bury St Edmunds.

Chris Stone, chief executive of Northgate, said: “This acquisition strengthens North-gate’s position within the fragmented local government sector as the group continues to lead consolidation in this market.

“It complements our existing product portfolio and brings a strong range of potential products and customers.

“In line with our stated strategy, the purchase brings a further opportunity to drive growth in our chosen markets.”

MVM’s portfolio of software applications includes spatial planning, health & public protection, CRM – customer relationship technology – and Electoral Registration Systems.

It has a long-standing and base of approximately 330 local government customers and is a niche supplier of Geographic Information Systems to the utilities sector.

It is expected to generate revenues in the region of £11.6m in the 12 months to March and Northgate expects the acquisition to be earnings enhancing in its first full year of ownership.

Northgate now has 2,200 staff with customers across the UK and Ireland. It works closely with a number of corporate organisations as well as approximately 30 per cent of the UK’s local authorities and all of its police forces.