Capita buys IT networks firm in £80m deal

 
Suzie Neuwirth
OUTSOURCING firm Capita yesterday said it has bought IT network services provider Updata Infrastructure for £80m, to strengthen its network capability across the UK.

FTSE 100-listed Capita has had a strategic alliance with Updata in Scotland since 2011, working together on contracts for local authorities and on a framework to deliver the Scottish Wide Area Network (Swan), a single network for all public service organisations in Scotland.

The Swan contract is worth up to £325m over nine years and will connect up over 4,600 sites including schools and hospitals.

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

“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,” said Capita chief executive Andy Parker.

“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 forecasts operating profit of £5.6m on turnover of £41.8m in its financial year to 30 June 2014.