HR firm opts for Herts HQ
Hertfordshire is set to become the headquarters of a major global human resources company following Northgate Information Solutions’ £257 million bid for Belgium-based ARINSO International.Already the UK’s leading supplier of specialist software, Northgate will seek shareholder approval to take over the Belgian firm claimed to be the leading independent provider of SAP-based (Systems Applications and Products) HR services and solutions in Europe, Asia and the Americas.
Northgate believes the combined businesses will be extremely well placed to address a $15bn worldwide HR outsourcing market, providing a substantial global platform from which Northgate can grow the enlarged business.
Northgate has signed an agreement with ARINSO CEO, Jos Sluys, to acquire his holding (60.43 per cent) for €18.75m in cash and five new Northgate shares for each ARINSO share.
After completion, Northgate will launch a mandatory public offer to acquire the remaining shares in ARINSO, elevating the total consideration to £257.2m.
The deal is being financed through a new £500m debt facility and the board expects it to be earnings enhancing in the first full financial year following its completion.