Information  X 
Enter a valid email address

Capita Group PLC (CPI)

  Print      Mail a friend       Annual reports

Monday 13 May, 2002

Capita Group PLC


Capita Group PLC
13 May 2002

13th May 2002

Capita acquires 3 HR businesses from PwC extending Capita's HR service offering
                             and market penetration

The Capita Group Plc ('Capita') has expanded its Human Resources services
offering by acquiring three HR businesses from PricewaterhouseCoopers Human
Resource Consulting  ('PwC') in the UK.  Capita has also established a
co-operation agreement with PwC to deliver an enhanced range of HR services to
the market.  This extended HR service offering positions Capita to meet the
growing demand for the delivery of comprehensive, integrated HR solutions from
organisations across both the private and public sectors.

Capita has acquired these three PwC HR businesses for a consideration of £14
million, to be satisfied in cash.  A further £1 million will be paid subject to
certain conditions being satisfied.  For the year to 30 June 2001, the
businesses reported turnover of £14 million and pro forma profits of £2.8
million after taking account of certain centrally apportioned overheads.  The
businesses transfer with negligible net assets.  The acquisitions will be
earnings enhancing in the current year.

The three PwC businesses, formerly part of PwC's Global HR Solutions division,
are Human Resources Outsourcing (including flexible benefits administration);
Interim Management (providing specialist interim senior management support); and
Executive Search & Selection,  (undertaking recruitment for senior and upper
middle management positions in both the public and private sectors).

The three PwC businesses, which currently deliver services to clients across the
full range of industry sectors, complement and extend Capita's existing HR
services offering.  Through the co-operation agreement between Capita and PwC,
Capita will make their enhanced HR Services offering available to the entire UK

Commenting on the acquisitions, Rod Aldridge, Executive Chairman of The Capita
Group Plc said:

'The HR outsourcing market is estimated to have a potential value of £10 billion
in the UK.  Recognised as one of the fastest growing outsourcing sectors, demand
for these services is rising by 40% per annum.

'These acquisitions will enable Capita to meet growing demand from both the
private and public sectors for more flexible, integrated HR outsourcing
solutions to meet their requirements and the needs of their employees.  The
market is increasingly seeking broader HR solutions that not only address the
burden of administering established employee requirements and benefits, but can
also effectively manage the escalating complexity of employee legislation and
meet the desire to deliver flexible employee benefits efficiently to assist in
retaining a loyal workforce.

'We are now positioned at the forefront of this market with a highly attractive
and adaptable HR offering for our existing client base and the wider market
place.  These acquisitions will strengthen our relationships with our public
sector clients and facilitate our drive into the private sector.'

The PwC businesses employ 220 staff across offices in London, Birmingham, Leeds,
Manchester and Edinburgh.  All staff from the three businesses will transfer to
Capita.  Following completion of the acquisition, PwC's HR Outsourcing business
will trade under the Capita name, while Executive Search & Selection and Interim
Management will initially trade under the new name of Veredus Executive

                                    - Ends-

For further information, please contact:
The Capita Group Plc                                   020 7799 1525

Rod Aldridge, Executive Chairman

Paul Pindar, Chief Executive

Shona Nichols, Group Marketing Director
Capita Press Office                                    020 7544 3141
Issued by:
Finsbury                                               020 7251 3801

Morgan Bone/ Mark Harris

Notes to editors:

The Capita Group Plc is a leading provider of integrated professional support
service solutions. The Group's service capabilities encompass customer services,
insurance services, human resource services, software services, systems and
strategic support and property services delivered to both public sector and
private organisations. With over 14,500 people at over 160 UK sites, Capita is
quoted on the London Stock Exchange and is a FTSE 100 company with revenues in
2001 of £691 million. In November 2001 Capita was awarded the Management Today
Most Admired Business Services Company Award.

The Capita Group Plc and PricewaterhouseCoopers are separate organisations that
recognise the skills that each other can bring to their clients and seek to work
together outside any formal alliance to achieve synergies and enhance client

                      This information is provided by RNS
            The company news service from the London Stock Exchange