Capita acquires Smiths Consulting Limited
Capita plc (`Capita') has acquired Smiths Consulting Ltd for a cash consideration of £10m on a cash free, debt free basis, with a further contingent consideration of up to £2m based on profit performance over the next two years.
Smiths Consulting is a SAP consultancy that specialises in delivering business change enabled by technology . The company has a strong customer presence in markets that include government, aerospace, telecommunications and finance.
The acquisition will enhance Capita's existing in-house SAP consultancy capabilities by creating a core hub of expertise and resource.
Smiths Consulting's employees are spread across the country and its business operations are located in Newcastle, with additional offices in London and Chelmsford. The business has 52 direct employees and is supported by 150 associates.
Smiths Consulting made a pro forma operating profit for its financial year to 31 March 2011 of £2.4m on a turnover of £11.8m.
Commenting on the deal, Paul Pindar, Capita Chief Executive, said: "Smiths Consulting has a loyal customer base that will benefit from Capita's scale and the scope of service offerings delivered by the wider Group. The individuals at Smiths Consulting have a breadth of experience in the delivery of SAP solutions, which is a valuable capability to bring into the business - particularly as we focus on providing flexibility and adaptability in our approach to IT transformation projects, regardless of their size."