Capita acquires ALS
23 December 2011
Capita acquires translation and interpreting specialists
Applied Language Solutions
The Capita Group Plc announces today that it has acquired Applied Language
Solutions Ltd (`ALS'). ALS provides translation and interpreting services to
the public and private sector, with clients including Google, Sony and
Caterpillar.
In August 2011 ALS was awarded a framework agreement with the Ministry of
Justice (MoJ). The MoJ and its partners, including Her Majesty's Courts and
Tribunal Service, the Crown Prosecution Service, Her Majesty's Prison Service
and police forces across England and Wales, will be able to sign contracts
under the agreement for the delivery of interpreting and translation services.
The framework is expected to deliver cost savings in excess of £60m over 5
years, greatly reducing the criminal justice sector's spend in this area.
Capita is acquiring ALS for £7.5m, on a cash free, debt-free basis, with a
further contingent consideration of up to £60m, based on profit performance and
staged over the next 4 years. The latter consideration is based on ALS
achieving growth targets in line with the successful roll-out of the MoJ
contract and greater penetration of the UK language services market.
ALS made a pro forma operating loss for its financial year to May 2011 of £0.3m
on turnover of £10.6m.
Capita Group Chief Executive, Paul Pindar, said: "The acquisition adds a new
service to the range of those the Capita Group is able to offer to both the
public and private sectors. By combining ALS's specialist skills and
proprietary technology with Capita's operational expertise and balance sheet we
believe that this will allow us to become a very strong player in the language
services industry. There are excellent opportunities for organic growth both in
the UK and internationally."
ALS, which will form a new standalone business within the Capita Group, has
around 130 employees based in the UK, India, Europe and the US and contracts
17,000 translators across the globe.
-ends-
For further information:
The Capita Group Plc
Tel: 020 7654 2306
Shona Nichols, Corporate Communications Director
Media enquiries
Capita press office
Caroline Mooney
Tel: 0207 654 2152 or 020 7654 2399 (out of hours)
Notes to editors
The Capita Group Plc is the UK's leading provider of BPO and integrated
professional support service solutions. With around 45,000 employees at more
than 350 sites, including 64 business centres across the UK, Ireland, the
Channel Islands and India, the Group uses its expertise, infrastructure and
scale benefits to transform its clients' services, driving down costs and
adding value. Capita is quoted on the London Stock Exchange (CPI.L), and is a
constituent of the FTSE100 with revenues for 2010 of £2,744 million. Further
information on The Capita Group Plc can be found at: http://www.capita.co.uk
Applied Language Solutions (ALS) is currently one of the world's fastest
growing language service providers, offering high quality language services
from translation and interpreting through to sign language and voice-overs to
the public and private sectors globally. The company has grown significantly
since 2003, generating just over £10.6 million in global sales in 2010, through
its international network of offices which are based in the UK, US, Guatemala,
Spain, France, Germany, India and Bulgaria. In December 2009, ALS featured in
the Sunday Times Fast Track 100 for the second year running, which ranks the
fastest growing UK companies by sustained year on year sales growth over a
three year period. As one of the fastest growing companies in the UK, ALS is
the first and only language services provider ever to have featured in the Fast
Track 100. The company won a prestigious Queen's Award for Enterprise in 2010
in recognition of its international revenues and coverage.
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