Capita in bolt-on acquisition of tech consultant

Outsourcing specialist Capita has beefed up its computer consultancy offering with the acquisition of Smiths Consulting.

Capita is initially paying £10m to acquire the systems applications and products (SAP) consultancy on a cash free, debt free basis, though the deal has a further contingent consideration of up to £2m which is based on profit performance over the next two years.

Smiths Consulting, which has 52 direct employees and is supported by 150 associates, specialises in delivering business change enabled by technology.

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The acquisition will enhance Capita's existing in-house SAP consultancy capabilities by creating a core hub of expertise and resource, the firm said.

Smiths Consulting made an operating profit for its financial year to March 31st 2011 of £2.4m on a turnover of £11.8m.

Capita's share price rose 1.14% to 622p by 14:30.

NR