Private equity firm in Canada completes £380 million acquisition of Civica
Civica Sold to OMERS for £380 Million
Civica, a UK-based software and business process outsourcing company specializing in the public sector, has been acquired by OMERS Private Equity, a division of Canada's Ontario Municipal Employee Retirement Systems, for £380 million.
The acquisition marks a new chapter for Civica, allowing the company to accelerate its existing plans, which include organic growth and continued acquisition. According to Tim Magness, group marketing director for Civica, OMERS's heritage as a body representing municipal workers makes it a good match for the company.
Background and Growth
Civica has been delivering business-critical software to public service providers for many years, developing a reputation for deep sector expertise, particularly in local government, social housing, libraries, social care, and healthcare sectors in the UK and internationally.
In 2008, the company was taken private by 3i in a deal that valued the company at £218 million. Since then, Civica has made 11 acquisitions, including expansion into the Australia and New Zealand market. Notable acquisitions include those of software companies such as Streamline and Abakus.
Recent Acquisition History
Unlike many other tech companies, Civica has maintained a stable corporate structure without significant recent acquisitions. However, other companies serving similar markets or having UK public sector software footprints, such as System C Healthcare and iomart, have been active in acquisitions recently. For example, System C acquired Oxford Computer Consultants, and iomart acquired Atech.
Notable Deals and Partnerships
In 2011, Civica signed a groundbreaking deal with Gloucester City Council to take over its revenue and benefits administration processes. The deal prevented a number of redundancies and improved the performance of the council's revenue and benefits operations. The service center from this deal is now being used by 14 other councils to meet ad-hoc requirements.
Civica's other customers include 275 healthcare providers in the UK, 75% of "blue light" services, local authorities including Manchester City Council and Hammersmith and Fulham, thousands of schools, 50 universities, and it provides the Automatic Number Plate Recognition (APNR) service to the police.
Financial Performance
Civica's profit (EBITDA) grew by 9% to £38 million, and its revenues grew by 11% last year to £202 million. The company sells software applications, cloud services based on those applications, and business process outsourcing services using that software.
References:
- Civica International
- Civica (company)
- Civica's Acquisition History
In light of the £380 million acquisition by OMERS Private Equity, Civica's financial performance, rooted in the public sector, business process outsourcing, and technology solutions, is expected to further grow and solidify. Given OMERS's heritage as a body representing municipal workers, this strategic partnership is expected to bolster Civica's position in the market.
