Capita preferred bidder in education joint venture

Outsourcing giant Capita said it was preferred bidder for an educational support services joint venture with Staffordshire County Council.

The joint venture, in which Capita will hold a majority stake, will initially deliver a range of educational support services for schools and academies in the Staffordshire region.

These services are expected to generate revenues of approximately £85m a year over 20 years if the Council's cabinet body gives the plan the thumbs up.

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

The newly-formed company will also look to secure new local authority, school, academy and further and higher education clients across the UK.

Over the first 10 years, the joint venture is targeting total revenue of at least £2bn.

As part of the agreement, Capita will acquire its stake in the joint venture with an initial investment of £24.9m in the first year and a further £6.6m over the following three years.

Around 3,800 staff are expected to transfer to the newly formed organisation.

"The UK schools education support services market is currently estimated to be worth around £16bn per year," Capita's statement said.

"With changes in Government policy giving education establishments greater freedom of choice over where and how they buy services, there is a significant opportunity for the provision of quality, industry leading support services on a national level."