Capita plc: Capita to acquire Northgate Managed Services Limited
14 February, 2013
CAPITA TO ACQUIRE NORTHGATE MANAGED SERVICES LIMITED
Capita has agreed to acquire Northgate Managed Services Limited (NMS) from Northgate Information Solutions for an enterprise value of £65 million. This comprises £22 million payable in cash consideration and, in addition, the assumption by Capita of a pension deficit of £17m net of tax relief and finance leases for equipment used in the business of £26 million.
Northgate Managed Services provides cloud-based, infrastructure solutions and specialist managed services to public, private and third sector businesses. NMS made a pro forma operating profit for its financial year to 30 April 2012 of £10 million on a turnover of £141.6 million.
Commenting on the acquisition, Paul Pindar, Chief Executive of Capita plc, said: "As the pressure mounts for businesses to gain efficiency, technology has a growing role to play. By combining NMS's managed IT services with Capita's complementary business process and IT outsourcing capabilities, Capita will enhance its offering to clients and enable them to transform the way they do business."
Headquartered in Newtownabbey in Northern Ireland, NMS has approximately 1,000 employees and a local IT services delivery centre. Completion of the transaction is subject to approvals from the necessary parties.
Separate divisions to NMS are being retained by Northgate Information Solutions.
For further information: Capita plc Tel: 020 7799 1525 Paul Pindar, Chief Executive Shona Nichols, Corporate Communications Director
Media enquiries Capita press office Kirsty Sewter Tel: 0207 654 2386 or 020 7654 2399 (out of hours)
Notes to editors
Capita plc is the UK's leading provider of business process management (BPM) and integrated professional support service solutions. With 46,500 people at more than 350 sites, including 68 business centres across the UK, Europe and India, the Group uses its expertise, infrastructure and scale benefits to transform its clients' services, driving down costs and adding value. Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE 100 with 2011 turnover of £2.9 billion and profit before tax of £385 million. Further information on Capita plc can be found at: www.capita.co.uk.
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