3i plans to sell or float IT provider Civica 3i Group, the private equity company, is planning to sell or float Civica, which provides software for a majority of the UK's local councils as well as police forces and NHS trusts. The company has appointed Rothschild to conduct a strategic review of the Civica business, which it bought for £190m in 2008. It is thought any transaction would take place in the first half of 2013. 3i bought the business following a failed management buyout attempt that had left the company's share price under strain. Civica's management felt that lack of market support - the shares lost nearly a quarter of their value in the wake of the failed buy-out - had jeopardised the company's ambitious growth plans. Under 3i's ownership Civica has continued to grow, despite cuts to IT spending by many councils and government departments. Revenues at the company have grown about 43 per cent from 2007, the company's last full year as a listed company, to £182.7m last year. Annual revenue growth was 8 per cent in 2011. Civica provides software and services for about 95 per cent of local councils, such as running the revenue and benefits system for Gloucester City Council. Local government accounted for more than 50 per cent of revenues in 2011. Civica's customers also include 275 healthcare providers, including 80 per cent of all NHS Acute Trusts, as well as fire and police services, schools and housing trusts. The company has also built a presence in Australia, Singapore and the US through a series of small acquisitions. About 39 per cent of its gross profits came from its international operations in 2011. The sale of Civica comes at a time when 3i is under pressure following heavy losses from an underperforming portfolio. The venture capital company is planning to lay off more than a third of its staff and cease new private equity investment outside northern Europe and Brazil. Michael Queen stepped down as chief executive of 3i in March following investor dissatisfaction with the company, which had to take heavy writedowns on assets during the recent financial crisis. In spite of its problems, Milan Radia, a software analyst at Jefferies, said that 3i had a relatively good record in managing small scale-software companies such as Civica and was likely to have added to the company's valuation since taking it private. 3i declined to comment.