Affected market: IT services for the HR sector
No. ME/1531/03
Please note that the full text of the decision can be downloaded from the link on the right. What follows are extracts regarding the parties, the transaction, jurisdiction, and decision.
The OFT’s decision on reference under section 33 given on 16 January 2004
PARTIES
Northgate Information Solutions plc (Northgate) supplies information technology (IT) solutions in the UK, US and Ireland. It licences computer software and provides associated consultancy services, operates maintains and manages IT based human resources (HR) activities, and sells accountancy software called FinanceLink. Rebus HR Group Ltd (Rebus) is the parent entity of a group of companies offering in-house IT solutions, hosting services, payroll software and outsourcing, employee information services and personnel services. It also has a 20 per cent stake in PS Financials, which sells accountancy software. It operates predominantly in the UK, but also in Australia, China, the Netherlands, New Zealand and Singapore. In the year ending 31 March 2003, Rebus' UK turnover was £73.7m.
TRANSACTION
Northgate proposes to acquire the entire business of Rebus and all of its subsidiaries. The proposal was pre-notified to the OFT on 16 December 2003. The statutory deadline, which has not been extended, expires on 16 January 2004.
JURISDICTION
As a result of this transaction Northgate and Rebus will cease to be distinct. The UK turnover of Rebus exceeds £70 million, so the turnover test in section 23(1)(b) of the Enterprise Act 2002 (the Act) is satisfied. A relevant merger situation is likely to be created.
DECISION
This merger will therefore not be referred to the Competition Commission under section 33(1) of the Act.
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