RNS Number:6334R
Northgate Information Solutions PLC
04 November 2003





Immediate Release



                      Northgate Information Solutions plc
                           ("Northgate" or "Company")

                      Acquisition of PWA Group Limited


Northgate Information Solutions plc (NIS LN) "Northgate", a leading supplier of
software applications and outsourcing solutions to the human resources, public
sector and corporate markets, today announces the acquisition of PWA Group
Limited ("PWA") from Great Plains Software, Inc, a Microsoft subsidiary, for
#2.5 million payable in cash.  As part of the acquisition, Northgate will
acquire #1.7 million of net liabilities comprising mainly deferred maintenance
income.


PWA's business comprises a suite of leading HR software applications, under the
brand Empower.  Based in Reading, Holborn and Knutsford, PWA has a client base
of over 750 customers.  PWA employs approximately 65 people, although, as part
of the acquisition agreement, a small number will remain with Microsoft.



For the twelve months to June 2003, PWA generated revenues of #7.1 million and
made a EBITA loss of #0.4 million.  Operating profits in the first quarter of
2004 were broadly break even as a result of cost-cutting measures undertaken by
PWA's existing management.  Northgate expects this acquisition to be earnings
enhancing in the first full year of ownership, before amortisation of goodwill
and exceptional items.



The acquisition of PWA further strengthens Northgate's overall market position,
widening its HR software offer into the SME market.  PWA's customer base will
generate additional cross selling opportunities for Northgate's integrated
personnel and payroll software ResourceLink and will offer limited synergies
through the reduction of certain duplicated central functions.  The PWA
transaction complements Northgate's acquisition of Prolog Business Solutions in
2002, which brought us a strong position in the SME payroll market and which has
already been integrated successfully within Northgate's HR division.  It will
also further complement the position created by the acquisition of Carapeople,
completed in June 2003 and which is being integrated in line with management
expectations.



Chris Stone, Chief Executive of Northgate, commented:



"I am delighted to announce the acquisition of PWA, a welcome addition to our
already comprehensive Human Resource offer.  PWA is an excellent fit within our
existing HR business. Together Empower and ResourceLink complement our earlier
acquisitions of Prolog and Carapeople, enabling Northgate to offer a
comprehensive HR software and payroll proposition to the market.  Overall we now
provide HR software and services to over 1,500 UK and Irish clients"


ENDS



Contacts


Northgate Information Solutions plc
Sandy Halse                                          01442 273000

Brunswick Group
Tom Buchanan / Conor McClafferty                     020 7404 5959



Notes to Editors



About Northgate Information Solutions (www.northgate-is.com)



Northgate Information Solutions is a leading supplier of software applications
and outsourcing solutions to the public sector, human resources and corporate
markets. Headquartered in Hemel Hempstead, Northgate employs 1,200 staff and has
approximately 1,500 customers across the UK and Ireland.  Northgate works
closely with many corporate organisations, as well as approximately 30% of the
UK's local authorities, and all of its police forces.  Northgate's focus is on
fully understanding application-specific processes, enabling organisations to
increase their business process efficiency. Equally, Northgate manages
customers' key systems, providing a broad range of outsourced solutions -
available at client sites or hosted at its own secure data centre.



Northgate Information Solutions plc is listed on the London Stock Exchange. For
further information visit the Northgate Information Solutions Portal at
www.northgate-is.com.





--------------------------


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

ACQGGMGMNDMGFZG