Outsourcing and support services group Capita (LON:CPI) has agreed a deal to acquire the health and government divisions of Tribal (LON:TRB) for £15.8 million on a cash-free, debt free basis, including a deferred consideration of up to £2.5 million. Capita said the deal would add further depth and breadth of expertise to its existing services, both for the health market and the wider public sector. Its services include running the NHS Choices programme, occupational health and medical screening, health informatics and the administration of both the Information Standard for healthcare information and the payment of National Health Service patient fees to dentists on behalf of NHS BSA.

Tribal’s health division includes expertise in clinical coding, health informatics and support for the establishment of commissioning consortia. Its government division includes support for environmental, home and foreign policy, and consultancy services for public housing, agribusiness and devolved administrations. The health and government divisions made a pro forma operating loss of £0.9 million on turnover of £71.5 million in the year to 31 December 2010.

Paul Pindar, Capita’s chief executive, said: “The government consulting acquisition will strengthen our proposition for service delivery and technical support across central and local government, including policing, justice and housing. In addition, Tribal’s health expertise fits with our strategic goal to provide support services to GP commissioning consortia. This will allow us to supplement our propositions in patient engagement, HR, payroll, finance, IT and estates services with more direct commissioning support services like invoice validation, health needs assessment and risk stratification. Our aim is to offer a comprehensive menu of services that cover the full range of functions that GP commissioners will be required to fulfil.”

Tribal's health and government divisions have around 340 staff, primarily in London, Belfast and Dublin. The deal is contingent on the go-ahead from Tribal’s shareholders.

In March, Capita acquired Talis Information Ltd for an initial for a consideration of £18.5 million in a move to add new expertise and capabilities to its existing products for the academic and public sector. With a range of around 100 academic and public library clients, TIL is a market leader in its sectors, providing management software and managed services. In 2010, Capita spent £301 million on 12 acquisitions and in its final results in February said there continued to be…

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