Capita acquires Carillion IT Services Ltd

Tuesday 9 June 2009

Capita acquires Carillion IT Services Ltd

Capita acquires Carillion IT Services Ltd.

The Capita Group Plc ('Capita') today announces that it is acquiring Carillion IT Services Ltd ('CITS') for a consideration of £36 million on a cash free, debt free basis.

CITS is the external facing IT services business of Carillion plc. The business was acquired by Carillion in February 2008 as part of its acquisition of listed company, Alfred McAlpine plc. CITS offers outsourcing, managed services and network infrastructure solutions to external clients. CITS is forecasting, on a pro forma, standalone basis, an operating profit for the year ending 31 December 2009 of £3.7 million on a turnover of £66 million.

This acquisition will add greater capacity and breadth of expertise to Capita's IT Services division. Capita IT Services currently offers organisations the full ICT lifecycle, ranging from business analysis through to a fully managed service. The acquisition of CITS will significantly add to the scale of this offering and bring relationships with a wide range of complementary clients across both the private and public sectors.

Paul Pindar, Chief Executive of the Capita Group Plc, said: 'The acquisition of CITS will significantly enhance and expand Capita's position in the IT services market. As well as increasing the scale of Capita's IT Services operations, CITS has a number of key customers and expertise in a range of areas that complement and support Capita's existing capabilities. There will be significant operational and cost synergies from the bringing together of CITS and Capita IT Services. CITS also has a strong presence in Scotland which will support our aim to continue building our operations and offering in Scotland.'

Noel McNulty, Managing Director of Carillion IT Services Ltd, said: 'CITS has a proven track record in delivering on business objectives through the provision of effective IT. We have strong relationships with our clients that are founded on collaboration and professional delivery. I am confident that bringing together CITS with Capita IT Services will mean that we are able to offer even more comprehensive solutions to all our clients and realise our full combined potential in the market.'

CITS has circa 440 employees across a number of locations in the UK, including 190 in Scotland.

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