Capita in bolt-on acquisition of tech consultant
Outsourcing specialist Capita has beefed up its computer consultancy offering with the acquisition of Smiths Consulting.
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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published