Acquisition of Edward Roscoe Associates
Capita Group PLC
15 December 1999
Acquisition of Edward Roscoe Associates
The Capita Group Plc ('Capita') has today announced the acquisition of
a leading telecoms engineering consultancy business, Edward Roscoe
Associates (ERA) for an initial consideration of £5 million.
Founded 25 years ago, it was an early entrant to the mobile telecoms
market and has established relationships with many of the leading
operators including Cellnet, Orange and Ericsson. ERA specialises in
surveying and advising companies on establishing their networks in UK
and Europe and oversees the installation of transmitting equipment and
the management of mobile phone coverage and voice and data quality. It
is well placed to take advantage of the rapid increase in mobile phone
coverage throughout the UK and Europe. Its clients for traditional
engineering consultancy services include many significant private
sector companies including Sainsburys, B&Q, MFI and Manchester United
Football Club.
ERA, which employs 146 staff in the United Kingdom and Europe, had
revenues of £7.9 million in the year to 30 April 1999 and generated
profit before tax, but after partners renumeration, of £39,000. Net
assets at year end were £334,584. Principal offices are situated in
London, Manchester and Edinburgh.
The purchase consideration of £5 million is to be satisfied by the
payment of £1 million in cash, the issue of 225,469 new ordinary
shares in Capita ('the consideration shares') and £1.5 million in loan
notes. A further consideration of up to £3.5 million will be paid on
31 March 2002 based on specific performance criteria.
Rod Aldridge, Executive Chairman of Capita commented:
'The acquisition of Edward Roscoe Associates provides us with an
excellent route into the burgeoning mobile telecoms industry. ERA is a
market leader which will enable us to offer our wider portfolio of
managed services into this sector. It also enhances our broad property
services offering'.
The consideration shares will be issued and credited as fully paid and
will rank pari passu in all respects with Capita's existing ordinary
shares. Application has been made to the London Stock Exchange for
these shares to be admitted to the Official List and this is expected
to take place on 16 December 1999.
For further information:
The Capita Group Plc 0171 799 1525
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Group Marketing Director
Issued by 0171 357 9477
Hogarth Partnership, John Olsen / James Longfield
Notes to Editors:
The Capita Group Plc is one of the largest and fastest growing
professional support organisations in the UK. The Group delivers a
range of integrated solutions, encompassing customer, administration
and human resources services, IT, Consultancy and property services to
both public and private organisations. With over 7,000 people
operating from some 100 UK sites, Capita is quoted on the London Stock
Exchange and is a FTSE 250 company with a market capitalisation of
over £2.3 billion.
For further information, please visit the Group's website -
www.capitagroup.co.uk.
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