REG-Capita PLC: Capita acquires Trustmarque <Origin Href="QuoteRef">CPI.L</Origin>

CapitaAnnouncement

21/06/2016 07:55

RNS 
 
 21 June 2016 
 
 Capita acquires Trustmarque 
 
 Capita today announces that it has acquired Trustmarque Solutions Ltd, part
of the Liberata group, from parent company Ardbid Ltd for a cash consideration
of £57m. The award-winning technology business delivers integrated services
that support UK private and public sector organisations through every step of
the IT investment process, from solution development through technology
provision to deployment and on-going support. 
 
 Trustmarque’s core business is software resale, licensing and technology
services. Its ‘Enterprise-as-a-service’ model helps customers transform,
integrate and simplify their technology and management of services. Key
specialities include software asset management and strategic cloud
consultancy. Other central service offers include business intelligence,
workforce productivity and resourcing. The Company serves over 1,450 private
and public sector clients and employs 620 employees based in five offices in
York, Coventry, Sheffield, Edinburgh and London. 
 
 Trustmarque reported revenue of £191.9m, net revenue of £107.0m*,
underlying EBITDA of £7.3m and underlying operating profit of £4.3m in its
last financial year to 31 December 2015. Gross assets were reported as £80.0m
at 31 December 2015. Post-acquisition, with benefits from cross selling, cost
savings and market growth, Trustmarque is expected to achieve Capita’s
target post-tax return on investment of 15% in 2018. 
 
 Trustmarque has a notable public sector presence in the NHS and in the
private sector in accounting and legal services. It is Microsoft’s most
accredited UK partner, holding 14 Gold Partner competencies, and is the
largest Microsoft public sector licensing specialist in the UK; providing over
£100m of licenses each year. It is also a Microsoft Cloud Solutions Provider
and is Microsoft’s biggest partner in the UK for public sector cloud. The
business is targeting strong growth in strategic cloud consultancy and has
identified a £5bn addressable UK market for these cloud services, including
MS O365 and MS Azure. 
 
 Capita has worked with Trustmarque for many years, as the Company was the
embedded software fulfilment partner within Capita Technology Solutions,
Capita’s technology reseller and service integration business. 
 
 Andy Parker, Capita’s Chief Executive said: “This acquisition provides
Capita with a set of capabilities and expertise that complement our existing
businesses – and the mix of core reseller activity and higher value services
is a strong proposition that will sit well with our wider technology offering.
Trustmarque’s ‘Enterprise-as-a-Service’ model will provide a number of
opportunities to build new services and deepen our existing relationships with
key partners, in particular with Microsoft. 
 
 “It will particularly enhance our growing Capita Technology Solutions
business, expanding its ability to offer innovative services to current and
potential clients. Specific specialities, such as software asset management
and strategic cloud consultancy, have strong synergies with Capita’s
existing propositions.”  
 
 Scott Haddow, Chief Executive of Trustmarque, said: “We are thrilled to
join Capita and take the next steps forward in Trustmarque’s development. We
are now well positioned for strong organic growth, supported by Capita’s
impressive expertise, experience and scale. There are a number of
opportunities for integration – including our success selling services
through G-Cloud – that will help us to lower costs and cross sell services
to customers. 
 
 “Capita’s long history with Trustmarque means that the two businesses
understand each other well, and we look forward to working closely with new
colleagues to deliver the best possible services and solutions.” 
 
 ENDS 
 
 *Net revenue excludes pass through agency sales, which under accounting
standards IAS18 and IFRS15 will not be recognised by Capita post completion. 
 
 For further information: 
 
 Capita plc 
 Tel: 020 7799 1525 
 Andy Parker, Chief Executive Officer 
 Shona Nichols, Executive Director, Communications 
 Andrew Ripper, Head of Investor Relations 
 
 Media enquiries 
 
 David Hendy 
 Tel: 020 7654 2399 
 David.Hendy@capita.co.uk 
 
 Note to editors 
 
 Capita is a leading UK provider of technology-enabled customer and business
process services and integrated professional support services. With 75,000
people at over 500 sites, including 94 business centres across the UK, Europe,
India and South Africa, Capita 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 2015 revenue of £4.7 billion. Further
information on Capita can be found at: www.capita.com . 
 


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