(By Anthony Miller – Friday 5th June 2009 8:15am). Capita appears to have spread its wings a little beyond its traditional UK, Ireland and Channel Islands stomping ground with the acquisition of Capmark Services Europe, the European arm of US-listed financial services group, Capmark Inc (see here). Capmark’s European operations span the UK, Ireland and Germany. Capita are paying around £10m cash for the European unit, which generated pro forma £3.8m operating profit on revenues of £11m last year. Nothing wrong with them margins – or the price! Capita’s Financial Services business comprises around 7% of its £2.4b group revenues but is the most profitable at 21% margin. My instinctive reaction is to assume they will promptly divest the German Capmark business as I just really can’t see Capita changing track towards mainland Europe, but I will check this out. In any event, this is just another in Capita's 'little and often' acquisition strategy which has been one of the cornerstones of its outstanding growth and profitability.
Friday, 5 June 2009
Capita buys European financial services group
(By Anthony Miller – Friday 5th June 2009 8:15am). Capita appears to have spread its wings a little beyond its traditional UK, Ireland and Channel Islands stomping ground with the acquisition of Capmark Services Europe, the European arm of US-listed financial services group, Capmark Inc (see here). Capmark’s European operations span the UK, Ireland and Germany. Capita are paying around £10m cash for the European unit, which generated pro forma £3.8m operating profit on revenues of £11m last year. Nothing wrong with them margins – or the price! Capita’s Financial Services business comprises around 7% of its £2.4b group revenues but is the most profitable at 21% margin. My instinctive reaction is to assume they will promptly divest the German Capmark business as I just really can’t see Capita changing track towards mainland Europe, but I will check this out. In any event, this is just another in Capita's 'little and often' acquisition strategy which has been one of the cornerstones of its outstanding growth and profitability.
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