Northgate Information Solutions, a software company serving the local government and criminal justice public services market, has acquired Anite Public Sector Holdings, an international software company focused on the wireless telecoms, public sector and travel markets, for £54 million.

The deal is subject to parent company, Anite, settling a payment of £3.8 million owed to Anite Public Sector and a working capital adjustment.

The £54 million transaction comes on the back of private equity firm Kohlberg Kravis Roberts & Co’s takeover of Northgate and marks the first step in the PE house’s plans to expand its portfolio company’s public service business through a strategic acquisition.

David Meaden, Northgate chief executive, said: “We are committed to supporting public service excellence, building and developing innovative partnerships with our clients to transform public services and place the citizens’ needs at their heart. This deal will help us to provide them with the enhanced services and solutions, which form an integral part of the transformation.”

The company works with local authorities and the police force. Its services are used in the administration of more than £12 billion of revenues and benefits; in electoral administration systems; in the national system for reporting police performance; and in the management of more than three million local authority and housing association properties worldwide.