Acquisition
Capita Group PLC
16 February 2004
16th February 2004
CAPITA MOVES INTO THE PROPERTY CONSULTANCY PREMIER
LEAGUE BY ACQUIRING SYMONDS GROUP
The Capita Group Plc ('Capita') has acquired Symonds Group Holdings Limited
('Symonds'), a leader in the provision of consultancy, project management and
design services for the property and infrastructure markets for an initial cash
consideration of £29.9 million.
Symonds will be merged with Capita's existing multi-disciplinary property
business, Capita Property Consultancy, to form a new company, Capita Symonds
Ltd. Its breadth of expertise, geographic reach across the UK and extensive
resources will ensure the new company a place among the top ten companies in the
industry. The new company will have approximately 2,700 employees, and proforma
returns of £160million per annum.
Capita has acquired the entire share capital of Symonds for £29.9 million in
cash. A further maximum of £1 million in deferred cash payments, dependent on
agreed targets to 31 December 2006, will be paid between 31st March 2005 and
31st March 2007. Chris Booy OBE, Executive Chairman of Symonds, will become Non
Executive Chairman of Capita Symonds Ltd.
Rod Aldridge, Executive Chairman of Capita, stated: 'This acquisition continues
our strategy of acquiring small to medium sized companies where they complement
or extend our existing core services. Increasingly in our major sales
opportunities, property is playing a wider role in our propositions. The
acquisition of Symonds promotes Capita's property consultancy offering into the
premier league.
'Symonds' extensive major project management and strategic master planning
expertise complements Capita's existing property consultancy offering. The
combined breadth of property disciplines of the two companies will enable Capita
Symonds to increase its involvement in major property and infrastructure
projects across the private and public sectors, enhancing revenues for the Group
and bringing clear benefits to clients.'
Symonds' service portfolio complements Capita Property Consultancy's offering
and its strong presence in London and the South of England will further
strengthen Capita's nationwide offering. Symonds' strengths in project
management, consultancy and design are clearly illustrated by their current
involvement in a number of landmark projects involving contracts of three to ten
years. These include the refurbishment of Wimbledon All England Tennis Club, the
Bristol Broadmead development, Dibden Container Terminal and the Lee Valley
Olympic facilities environmental impact exercise on behalf the London
Development Agency.
The company has specialist skills focused on road, rail and airport
infrastructure, areas which are attracting greater government funding. These
capabilities and Symonds' specialist technology design expertise, which was
utilised in the London Congestion Charge Scheme, extend Capita's transportation
activities. Symonds also brings complementary skills in engineering consultancy,
construction management, immersed tunnelling, acoustics and urban regeneration.
Richard Marchant, Managing Director of Capita Property Consultancy, welcomed the
announcement: 'The integration of these two companies will be of great benefit
to all involved. The combination of our highly experienced consultants and an
established local presence throughout the UK will undoubtedly ensure that the
real winners will be our clients.
'We welcome the 700 skilled staff that will be transferring as a result of the
agreement. They join a thriving business and will play an important role in the
future development of our combined service.'
Symonds has an operation in the Philippines (2003: unaudited turnover £0.7
million and operating profit £0.02 million) that will be retained by the
vendors. Excluding the Philippines, on a proforma basis, the unaudited
management accounts of Symonds Group (Holdings) Limited for the 12 months to
31st December 2003 report an operating profit of £4.0 million on turnover of
£51 million. Net assets on transfer will be approximately £9 million, including
free cash balances of approximately £4.0 million.
-Ends-
For further information contact:
Capita Press Office: +44 (0)870 2400 488 media@capita.co.uk
Finsbury +44 (0)207 251 3801
Morgan Bone
Mark Harris
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 17,000 employees at more than 200
offices across the UK, Capita is quoted on the London Stock Exchange (CPI.L)
with forecasted revenues for 2003 of £1075 million.
In April 2003 Capita was named Company of the Year in the Royal Bank of Scotland
Sunday Times Business Awards. Capita has won Management Today's Most Admired
Support Services Company Award in 2003, for the third year running.
Further information on The Capita Group can be found at: www.capita.co.uk
This information is provided by RNS
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