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.

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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.

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