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Capita Group PLC (CPI)

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Monday 31 March, 2008

Capita Group PLC

Acquisition

Capita Group PLC
31 March 2008



31 March 2008


CAPITA ACQUIRES LANCASTER INSURANCE SERVICES LTD


The Capita Group plc ('Capita') today announces the acquisition of HFR Holdings
Ltd and Lancaster Insurance Services Ltd ('Lancaster') for a consideration of
approximately £16.5 million, net of cash acquired. The acquisition will add
greater capacity and valuable new expertise to Capita's insurance intermediary
business.



Lancaster specialises in providing insurance for classic cars.  Its operating
profit for the 12 months ended 31 December 2008 is forecast to be £1.7 million
on turnover of £6.6 million.



Paul Pindar, Chief Executive of the Capita Group Plc said: 'The acquisition of
Lancaster will add both new, specialist expertise and important cost synergies
to Capita's personal insurance intermediary and administration business.
Lancaster operates in a number of areas of the market that differ from, but
complement, those in which our existing business, BDML, operates. It works with
many of the same insurers providing for future negotiations to reflect these new
economies of scale and the opportunity to offer more ancillary products to
existing customers. Its acquisition will allow us to provide a more
comprehensive service offering over a greater range of product lines. The
bringing together of the two businesses also provides new career opportunities
for employees in both.'



Bill Godsell, Managing Director at Lancaster said: 'Joining forces with Capita
represents a great opportunity for both our insurance industry clients and our
staff.  We are fully committed to maintaining the focus that we have on
specialist expertise and service excellence and being part of Capita will allow
us to further enhance the value we offer in these areas.'







                                     -ends-



For further information please contact:

Paul Pindar, Chief Executive

Shona Nichols, Corporate Communications Director

Tel: 020 7799 1525



Media enquiries:

Caroline Mooney

Capita press office

Tel: 0207 654 2152 or 0870 2400 488 (out of hours)



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 29,000 employees at more than 300
offices across the UK, Ireland and India, Capita is quoted on the London Stock
Exchange (CPI.L), and is a constituent of the FTSE100 with revenues for 2007 of
£2,073 million.



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




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