Competition Commission may force sale of IBS

Wednesday, Apr 01 2009 by
  • The Competition Commission (CC) has provisionally concluded that the completed acquisition by Capita Group plc (Capita) of IBS OPENSystems plc (IBS) could damage compe-tition in the market for the supply of revenues and benefits software to local authorities in the UK. Before the merger, both Capita and IBS sold revenues and benefits software, which is used by local authorities to collect council tax and business rates revenue and to make certain benefit payments.


Christopher Clarke, Inquiry Group Chairman, commented: This merger combines two closely competing suppliers of revenues and benefits software to local authorities, leaving only one other supplier actively competing for business. In a stable market with little prospect of entry by new suppliers, our provisional conclusion is that the enlarged Capita revenue and benefits business will be able to take advantage of the lack of competition, for example by increasing prices or reducing levels of service to its customers.

http://www.competition-commission.org.uk/press_rel/2009/apr/pdf/15-09.pdf

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Capita PLC is a United Kingdom-based company, which creates and delivers services in business process management. The Company's segments include Digital & Software Solutions, Integrated Services, Local Government, Property & Health, Workplace Services, IT Enterprise Services, Customer Management, Capita Europe and Insurance & Benefits Services. The Company operates in private sectors, such as banking and financial services, insurance, life and pensions, retail, telecoms and media, transport and utilities, and public sector, such as central government, defense, education, emergency services, health, local government, and police and justice. The Company offers its services, which include business process management, customer management, digital and software solutions, financial services, information technology, legal services, property and infrastructure, travel and events, human resource and recruitment, debt solutions, and corporate and administration service. more »

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1 Post on this Thread show/hide all

Stocktaculous 1st Apr '09 1 of 1
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Bit of a blow as Capital had been looking in good shape despite the downturn, as companies seeking to save money increasingly opt to outsource work...

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