Premium public partners
Civica is a market leader in the supply of software and services to the public sector. In partnership with 3i, the company will capitalise on its strong solution set and service capabilities, make strategic acquisitions and accelerate global growth.

Supporting lean, efficient public services
Across the public sector, the drive is on to make services more lean, efficient, responsive and measurable. Civica helps its clients achieve these goals by providing software solutions that streamline core processes for a wide range of activities, from local government and social housing to law enforcement and education. For over two decades, the business’s success has rested not simply on the calibre of its software but also on its deep understanding of clients’ needs and markets.

As a result, Civica’s offering includes consultancy services to help clients with process improvement, planning and implementation, and service management to ensure effective day-to-day delivery. The company enjoys a strong market position in the UK and Australia. It also has a well-established presence in the USA, and a Singapore office that provides a springboard for growth across the vibrant South East Asian market. Civica’s 1,700 clients include 90% of UK local authorities and police forces, as well as nine of Australia’s top 10 health funds. In total, its systems support transactions with 25 million citizens and businesses, and help manage over €5bn of revenue.

A partnership for growth
In April 2008, 3i acquired a majority shareholding in Civica in a public-to-private transaction that valued the business at €295m. For 3i Partner Simon Freer, who led the investment, Civica was simply the outstanding operator in its market: “3i has longstanding expertise in both the technology sector and the supply of services to local government, so the intersection between the two is of great interest to us. The constant pressure to ‘do more with less’ makes public sector software a resilient growth market.

Three factors distinguished Civica as the premium operator. Firstly, Civica represents the most  comprehensive platform to leverage off and build organically and inorganically, notably given its scale and progress in services. Secondly, Civica is the only operator to combine leadership in domestic markets with a superb platform for international growth. Thirdly, Civica’s executive team, led by CEO Simon Downing, has a long track record of success, delivering outstanding performance at all stages of the economic cycle, under both public and private ownership.”

For Simon Downing, 3i was the ideal partner to help Civica evolve: “Our leadership team recognised that the next phase of growth could best be achieved under private ownership, and no other firm has as much public-to-private experience as 3i. We’d known 3i’s people for some time and saw them as highly credible partners, with the insight, resources and networks to accelerate Civica’s growth.”

Enhanced customer solutions
The combination of 3i’s sector experience and contacts with Civica’s diverse mix of clients and products will unlock a wide range of exciting opportunities. One key focus will be developing service offerings. Clients who buy one product frequently need other Civica services, while the company’s geographic footprint enables it to develop innovative products in one location and migrate them elsewhere: its highly successful software for libraries was developed in Australia before being sold in the rest of Civica’s geographical footprint. Through its high-profile contract to run Singapore’s school libraries, Civica is  helping to set standards in a market where public private partnerships are at an early stage. 3i’s on-the-ground presence in Asia will help Civica achieve rapid growth across the region by delivering local knowledge and access to a rich network of contacts.

In Civica’s core UK market, major programmes such as Building Schools for the Future are driving high levels of public sector IT spending. As local authorities increasingly choose to work with fewer, closer partners, Civica will grow market share and progress from service management to niche business process outsourcing. 3i’s expertise in researching and completing acquisitions will be a further key growth factor, supporting in-fill purchases that widen the range of customers and solutions, and strategic mergers that deliver step changes in scale.

In Simon Downing’s view: “Civica is a successful business with an ambitious management team. In 3i, we have the ideal partner for both organic and acquisitive growth. They understand our markets and have the global reach to make a genuine difference. “With their expertise and support, we are in a stronger position to achieve our goal of making Civica the principal international provider of software products and services to the public sector."

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