Capita acquires SouthWestern
14 August 2014
Capita acquires SouthWestern
Capita plc (`Capita') has acquired SouthWestern Business Process Services
Limited (`SouthWestern') from private equity group Ion Equity, for a
consideration of €35m (£28m) on a cash free, debt free basis. SouthWestern is
the leading domestic provider of outsourced managed services in Ireland.
SouthWestern delivers customer relationship management, financial shared
services, data processing and inspectorate services to private and public
sector organisations, from offices in Ireland, the UK and Poland. Its clients
include the Department of Agriculture Food and Marine, Bord Gáis, the
Department for Environment, Food and Rural Affairs, Bord Bia, Eircom and Failte
Ireland.
SouthWestern is forecasting an operating profit of €3.4m on turnover of
€33.6m in its financial year to 31 December 2014. Following some integration and
IT systems enhancement in 2015, Capita expects SouthWestern to generate an
operating profit of around €7m on revenues of €47m in 2016.
Andy Parker, Capita chief executive, said: "Capita has an established presence
in Ireland with more than 1,000 employees delivering services across the
financial services and other sectors. This deal will significantly enhance
Capita's presence in the Irish business process outsourcing market, which is
estimated to be worth €1bn and growing by 5 per cent each year[1].
"SouthWestern is a highly respected outsourcing company with an excellent
private and public sector client base. It has particularly strong relationships
with organisations in the agricultural sector, which is a growing and new
market for Capita. The acquisition will provide Capita the opportunity to
provide new services to SouthWestern's existing clients and to continue to grow
both its customer base, and job opportunities."
Ion Equity chairman and outgoing SouthWestern chairman Neil O'Leary said: "Ion
is proud to have led SouthWestern during a period of strong growth. It was an
entrepreneurial business that employed 180 people when we acquired it but,
through sustained hard work from a highly skilled workforce and an unwavering
focus on delivering for its clients, it is now the number one in its key
business areas, employing 1,000 people and growing strongly. While we are very
happy with our involvement in SouthWestern, Capita is in a position to support
greater success and accelerate job creation and we wish all stakeholders a very
successful future."
SouthWestern employs around 1,000 employees, primarily based across three sites
in County Cork, and one in Lodz, Poland, together with smaller operations in
Dublin and Milton Keynes.
For further information:
Capita plc
Tel: 020 7799 1525
Andy Parker, Chief Executive Officer
Shona Nichols, Corporate Communications Director
Media enquiries only:
Capita press office
Caroline Mooney
Tel: 020 7654 2152 or 020 7654 2399 (out of hours)
Email: caroline.mooney@capita.co.uk
Note to editors
1. Source: Nelson Hall.
Capita plc is the UK's leading provider of BPO and integrated professional
support service solutions. With 66,000 people at over 400 sites, including 73
business centres across the UK, Europe, India and South Africa, 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 FTSE 100 with 2013 revenue
of £3.9 billion. Further information on Capita plc can be found at:
www.capita.co.uk
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