Capita acquires secure IT network provider Electranet
Capita today announces that it has acquired Electranet, a leading supplier for the design, delivery and support of highly secure network and communication infrastructure in the UK, for a cash consideration of £37m on a cash-free, debt-free basis. The business runs one of the UK’s few commercial sites that is approved to hold UK government protectively marked information, allowing it to support secure government projects.
Electranet reported a pro forma operating profit of £2.7m on a turnover of £15.1m in its last financial year ending 28 February 2015 and is forecasting an operating profit of £5.1m on turnover of £26.4m in its current financial year to 28 February 2016. The business will join Capita’s IT Enterprise Services division.
Electranet supports high profile government and private sector customers that require secure and effective networking and communication solutions. The company handles highly secure data and is approved to sponsor its own workforce through national security vetting processes, such as the Counter-Terrorist Check and Developed Vetting.
Andy Parker, Capita’s Chief Executive, said: “The acquisition of Electranet will enable an evolution of our secure IT infrastructure capability. This business will allow Capita to build on its existing expertise and deliver highly secure services to both new and existing customers.
“We will integrate Electranet’s skills and experience into Capita’s services in a number of key sectors – driving forward organic growth and expanding our capability to build innovative new IT enabled solutions.”
Andy Richards, Chief Executive of Electranet, said: “This acquisition marks the next natural stage of our growth as an organisation. Capita can provide access to investment and customers that will allow us to build on our great success to date. As part of Capita, our team will be able to grow and develop as we work to deliver secure and innovative systems for our customers.”
Palatine Private Equity invested in the company in 2008 as part of a management buyout. This acquisition will see the private equity house exit the business.