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Capita Group PLC (CPI)

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Friday 02 February, 2007

Capita Group PLC

Acquisition

Capita Group PLC
02 February 2007


2 February 2007


          CAPITA ANNOUNCES ACQUISITION OF HARRY WEEKS TRAVEL & LEISURE


The Capita Group Plc ('Capita') announces that it has acquired Harry Weeks
Travel & Leisure Group Limited ('Harry Weeks'), a business travel software
provider via its Evolvi and Travelpackonline software products. Capita has
acquired the entire share capital of Harry Weeks for a cash consideration of
£21m. A further £12m, payable in cash, will be paid over the next four years
subject to the business achieving certain performance targets.


Following Capita's 2005 entrance into the UK travel management market, via its
acquisition of Lonsdale Travel Ltd, Harry Weeks will further enhance Capita's
proposition to the business travel market. Harry Weeks provides business travel
software and solutions direct to UK organisations and government departments and
also to travel management companies. In addition to its rail ticketing issue
system, featuring the company's innovative software (Evolvi and
Travelpackonline), the company offers a travel management service and an
employee travel benefits service (Leisuretime).


'This acquisition provides us with an exciting new proposition in the rail
travel market,' commented Paul Pindar, Chief Executive of Capita. 'Last year we
identified travel management as an area of major spend where we can add value to
our public and private sector clients by offering effective solutions and
outsourced services. With our growing portfolio of travel management services,
we believe this will be an interesting market for us going forward.'


The UK domestic business travel market is worth £6.8bn, of which c.16% is rail
travel. The rail market is forecast to grow at between 3.5% and 5.5% p.a. with
business rail travel expected to grow faster. Harry Weeks has a strong and
growing position in this market with a product portfolio of online rail
ticketing solutions that support both corporate customers direct and travel
intermediaries. Corporate clients who require self-service when making
reservations or printing tickets benefit from reduced costs as lowest cost
travel options are automatically selected and leakage is reduced.


Travel intermediaries and train operating companies face current rail services
distribution technology being phased out by the end of 2007. The combination of
Evolvi technology with the process expertise of Capita provides companies with
an alternative distribution solution to meet the needs of their customers whilst
also delivering increased efficiencies to their businesses.


Harry Weeks' un-audited accounts for the year ended 31 October 2006 recorded net
profit before tax of £0.5m on turnover of £3.6m. As at 31 October 2006 Harry
Weeks had un-audited net assets of £0.7m. Evolvi and Travelpackonline were
developed by the company and sales have grown rapidly since their introduction
to the market in April and September 2005 respectively. Material growth is
forecast in 2007.


Harry Weeks operates out of Orpington, Kent and the entire workforce of 70
employees will now transfer to Capita.


Grahame Weeks, Managing Director of Harry Weeks Travel & Leisure, said, 'Both
companies have a strong heritage and we are confident that as a combined entity
we will continue to drive the growth of the business and add value to our
clients. We believe that this move holds many career opportunities for our
valued employees.'

                                     -ends-


For further information please contact:


Shona Nichols

Corporate Communications Director

The Capita Group Plc                                 020 7799 1525

Capita Press Office                                  0870 2400 488


Notes to editors:


The Capita Group Plc is the UK's leading provider of integrated professional
support service solutions. The Group's service capabilities encompass customer
services, financial services, human resource services, software services,
systems and strategic support and property services delivered to both public
sector and private organisations. With over 26,000 employees at more than 250
offices across the UK and Ireland, Capita is quoted on the London Stock Exchange
(CPI.L), and is a constituent of the FTSE100 with revenues for 2005 of £1,436
million.


Further information on The Capita Group Plc can be found at:  www.capita.co.uk


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