Capita pays £80 million for Updata

Capita has bought IT network services provider Updata Infrastructure (UK) Limited for £80 million.

Updata provides network services for more than fifty councils including Kent, Essex, Hertfordshire and Walsall. In February, the company signed a deal to create a public services network for public service bodies in Cheshire and Merseyside, worth an initial £6 million.

The two firms have had a strategic alliance in Scotland since October 2011, working together on contracts for local authorities in West Dunbartonshire, North Ayrshire, Fife and East Lothian.

The two companies have also collaborated over the Scottish Wide Area Network (SWAN), a single public services network for the use of all public service organisations within Scotland.

Capita chief executive Andy Parker said: “Updata has a strong reputation across the public sector as a provider of IT networks that help schools, councils and health bodies deliver improved services.

“As part of Capita, Updata will strengthen our network capability and ensure we continue to meet the needs of our clients across the UK.”

Updata employs 160 people at six UK offices with a head office in Reigate, and will now become part of Capita’s IT services division.

The firm is forecasting an operating profit of £5.6 million on a turnover of £41.8 million in its financial year to 30 June 2014.

For the year to 31 December 2015, Capita expects Updata to generate operating profits of around £12 million on revenues of around £74 million, it said in a statement.

Colin Marrs

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