Capita Group PLC
19 December 2002
19 December, 2002
Capita in exclusive discussions to acquire Aurora to expand further into the
commercial insurance sector
& to Secure a significant run-off contract
The Capita Group Plc ('Capita'), announces that it is in exclusive discussions
to acquire Aurora Corporate Services Ltd ('Aurora'), providers of support
services to the insurance sector. As part of the proposed arrangement, Aurora's
multi-million pound contract with the Joint Provisional Liquidators ('JPLs') of
Independent Insurance to administer run-off services will transfer to Capita.
Capita intends to acquire 100% of the shares in Aurora for an undisclosed
upfront cash consideration and completion is expected early in the new year.
The Independent Insurance run-off contract is of approximately five years
duration and is currently one of the most significant run-off contracts in the
Commenting on the announcement, Rod Aldridge, Executive Chairman, The Capita
Group Plc, said:
'Assuming the successful completion of our negotiations, this transaction will
reinforce Capita's position as the UK's leading provider of outsourcing services
to the insurance market. Aurora's expertise in the commercial insurance segment
will enhance Capita's existing activities in London Market and personal lines
business. Additionally, the team of experts and infrastructure that will
transfer to Capita provide further scale and depth to our insurance operations.
This provides us with a platform for continued growth in the expanding market
for outsourced services across the insurance sector.'
Mark Batten and Dan Schwarzmann, partners at PricewaterhouseCoopers were
appointed as JPLs of Independent Insurance Ltd in June 2001. They subsequently
established Aurora as a going concern to provide Independent Insurance with the
necessary portfolio of run-off services.
Dan Schwarzmann, Joint Provisional Liquidator from PricewaterhouseCoopers added:
'This should be a great deal for creditors, arising from a highly competitive
process. It is also an excellent outcome for staff and will ensure that their
knowledge and expertise is retained for the benefit of Independent's creditors.'
Ken Blanc, Chief Executive at Aurora continued:
'This transaction should provide the 360 staff at Aurora with an opportunity to
grow the business further within Capita. We believe the complementary strengths
of the two organisations will create a unique value proposition for the
insurance BPO market. We are already working with Capita on some interesting
Capita is making this announcement as Aurora's staff are attending presentations
to inform them of this transaction today. If appropriate, an announcement
giving further financial information will be made in due course.
For further information:
The Capita Group Plc: 020 7799 1525
Shona Nichols, Communications Director
Capita Press Office: 020 7544 3141
PricewaterhouseCoopers: (Media enquiries) 020 7213 4731
The Capita Group Plc, is the UK's 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 the public
and private sector. The general insurance sector is increasingly seeking service
delivery partners to assist in responding to the challenges in their market
place and Capita views this sector as an important area for growth. The total
potential value for business process outsourcing (BPO) opportunities in the
general insurance sector is estimated to be £4 billion. With more than 17,000
employees at over 200 UK sites, Capita is quoted on the London Stock Exchange
(CPI.L) and is a FTSE 100 company with estimated revenues for 2002 of £895
million. For further information, visit www.capita.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange