Outsourcing group Capita has bought a hotel, business travel and conference booking agency in an attempt to expand its existing operations in the business travel market.
The firm has acquired Expotel Group for a consideration of £16m on a cash-free, debt-free basis. Expotel generated £16.3m in turnover in the year to October 31st 2011 and made a pro forma operating profit of £3.2m.
"The addition of Expotel will bring both significant additional expertise and greater scale to our UK focused corporate travel business," said Capita's Chief Executive Paul Pindar.
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
"Expotel also brings considerable experience in venue and event management, which, alongside our existing business, creates a proposition of genuine scale and depth in this fast growing area of the market," he said.
The combined company will employ nearly 900 staff in 10 locations.
"With the public sector needing to drive down travel and subsistence costs, it will be in a strong position to help local and central government achieve these aims."
By 08:29 on Friday, Capita's shares were down 0.21% at 720p.
-
Michelin Key Hotels 2025: the top destinations in the worldThe Michelin Keys have been awarded to spectacular hotels across the world. From Marlon Brando's private resort in Polynesia to a Bvlgari hotel in Tokyo, we look at some of the most extraordinary stays in 2025
-
MoneyWeek news quiz: How much could you get in car finance compensation?The car finance scandal, inheritance tax, and house prices all made headlines over the past few days. Test your knowledge while reviewing this week’s top stories with MoneyWeek’s news quiz
