Serco has wangled a £20m lower price tag for the Carillion NHS healthcare contracts it's due to acquire

Lucy White
Government Pledges Increase In NHS Funding
Serco will now only pay £29.7m (Source: Getty)

Outsourcer Serco has pushed down the price it is due to pay for healthcare contracts from bust services group Carillion by almost £20m.

In December, when Carillion was still trading and before the depths of its distress had become fully apparent, Serco had agreed to pay £47.7m for the portfolio of healthcare services contracts it was flogging.

But today Serco announced that, under a revised agreement, it would only shell out £29.7m. As a result of Carillion's liquidation, Serco said it was forced to re-evaluate "potential liabilities, indemnities, warranties and the additional working capital investment".

Read more: Serco Group buys US defence firm and acquires contracts portfolio from rival Carillion

Serco added that it still expects the contracts to generate the same revenues and profits as before. They relate to more than 50 NHS sites across the UK, including five acute hospital trusts.

Housebuilder Galliford Try has also been prompted to make changes due to Carillion's liquidation. It announced it will be raising £150m from investors to cover increased costs at projects it ran with the bust company, and said it has improved its tendering process to ensure it doesn't take on such contracts in the future.

Read more: "The taxpayer will foot the bill": Here's what 11 City analysts say about the Carillion collapse

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