DC Advisory advised NEC Software Solutions UK on its acquisition of Capita Secure Solutions and Services from Capita plc

Background

• NEC Software Solutions UK (NEC SWS), part of the Japan-based NEC Corporation (NEC), provides innovative software and services to UK police forces as well as law enforcement organisations across the world
• DC Advisory (DC) previously advised Cinven on the sale of NEC SWS (previously known as Northgate Public Services) to NEC Corporation in 2018 
• This investment provided NEC SWS with the financial flexibility to pursue its growth strategy, including bolt-on acquisitions, as well as significantly strengthening NEC’s global footprint and presence in the UK market

Process

• DC was engaged by NEC SWS to provide valuation and strategic advice in relation to the acquisition of Capita Secure Solutions and Services
• NEC leveraged DC’s unique global footprint, with the global team bringing together strong expertise across both the UK and Japan to help bring the transaction to a successful outcome for all involved parties

Outcome

• NEC SWS agreed to acquire Capita’s Secure Solutions and Services for consideration expected to be £62m on a cash free, debt free basis
• The acquisition of Capita Secure Solutions and Services - a supplier of innovative consulting, digital and software solutions - marks NEC SWS’s seventh acquisition since being acquired by NEC
• The complementary offerings will allow joined up delivery and connected technology driving opportunities for more effective processes and operations for customers
• This transaction helps to bolster DC's strong track record in the public sector software and professional services spaces, and further profiles DC's unique Asia Access offering
• Subject to consents and regulatory approvals, the deal is intended to complete around the end of 2021

“It was a pleasure working alongside the NEC SWS team again, this time on a transformational bolt-on acquisition. The transaction adds to DC’s strong public sector software franchise and further strengthens NEC’s product offering. I look forward to seeing the team continue going from strength to strength under NEC’s ownership.”

"This is the third European transaction by NEC involving DC in as many years; once again an excellent example of solid execution led by the world-class management of the NEC SWS team in the UK, and endorsed by the Japanese shareholder who continues to drive its global ambition."