Capita branches out in the business travel market

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

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

"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.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.