2nd Feb 2010. NorthgateArinso, a private equity-owned (Kholberg Kravis Roberts & Co), global Human Resources (HR) software & services provider, has announced the acquisition of South Australian HR and payroll solution provider, Neller Pty Ltd. The acquisition supports NorthgateArinso’s global growth strategy and is integral to the company’s ongoing success in the Australia, New Zealand and Asia Pacific markets.
Financial terms have not been disclosed.
Neller, headquartered in Adelaide, Australia, develops and markets its Preceda software and services to support HR and payroll professionals. Neller’s subsidiary, Neller Employer Services (NES), provides comprehensive outsourced payroll services.
According to the press release, with Neller’s highly experienced management team and track record of delivering quality HR & payroll services, the combined organisation will have an unrivalled capability to deliver flexible HR & payroll solutions across both Australia and New Zealand. Together the combined entity will provide the most comprehensive and advanced suite of HR technology, outsourcing, and consulting options available on the Australian and New Zealand markets.
David Page, Managing Director of Neller, will assume overall responsibility for NorthgateArinso’s Australia/New Zealand business and will report directly to Darcy Lalonde, President Asia Pacific (APAC).
Neller managing director, David Paige said the company’s 90 staff will be retained. “This transaction will offer our customers even greater access to a wide range of benefits that come with our enhanced suite of offerings, collective skills, experience and international reach.” Paige said. “The opportunity to acquire Neller is one NorthgateArinso simply could not pass up,” said Darcy Lalonde, President APAC. “The company’s credentials in Australia are second to none and they are very well recognised and respected”
The acquisition increases the company’s footprint in Australia and New Zealand with offices in Auckland (New Zealand), Adelaide, Perth, Brisbane, Melbourne, Sydney and Wellington (New Zealand). Neller generated $18 million revenue in the past financial year, and over the past seven years revenue and earnings grew by double-digit figures. The combined entity will have staff of approximately 150.
Established in 1976, Neller has been a market leader in Australia/NZ developing systems and solutions to manage people. A long standing IBM solutions partner, in 2006 Neller re-developed their AS400 based system into a fully functioning web based application (Software as a Service) using tools provided by LANSA.
Neller was acquired in a management buyout in April 2007, at which time Australian private equity provider and M&A adviser ANZ Capital became a majority shareholder.
Neller and subsidiary, Neller Employer Services (NES), service over 1,100 medium to large organisations across various industries throughout Australia and New Zealand with their market leading Preceda OnDemand SaaS solution.
NorthgateArinso is a leading global Human Resources software & services provider offering innovative HR business solutions to employers of all sizes, including Global Fortune 500 companies and many Public Sector organizations. Headquartered in the UK, it employs 7,000 personnel around the globe. With 2009 revenues of £645.6 million it is one of the 5 largest HR service providers worldwide and have offices in 31 countries on 5 continents.
Kohlberg Kravis Roberts (KKR) acquired the firm, which processes payslips for one third of Britain’s workers, for £593 million in December 2007. The price was a 60% premium to market price immediately before the approach was disclosed to the market. At the close of 2009, private equity firm KKR had US$53bn of assets under management.