Capita : acquires Trustmarque

RNS

21 June 2016

                          Capita acquires Trustmarque

Capita today announces that it has acquired Trustmarque Solutions Ltd, part of
the Liberata group, from parent company Ardbid Ltd for a cash consideration of
£57m. The award-winning technology business delivers integrated services that
support UK private and public sector organisations through every step of the IT
investment process, from solution development through technology provision to
deployment and on-going support.

Trustmarque's core business is software resale, licensing and technology
services. Its 'Enterprise-as-a-service' model helps customers transform,
integrate and simplify their technology and management of services. Key
specialities include software asset management and strategic cloud consultancy.
Other central service offers include business intelligence, workforce
productivity and resourcing. The Company serves over 1,450 private and public
sector clients and employs 620 employees based in five offices in York,
Coventry, Sheffield, Edinburgh and London.

Trustmarque reported revenue of £191.9m, net revenue of £107.0m*, underlying
EBITDA of £7.3m and underlying operating profit of £4.3m in its last financial
year to 31 December 2015. Gross assets were reported as £80.0m at 31 December
2015. Post-acquisition, with benefits from cross selling, cost savings and
market growth, Trustmarque is expected to achieve Capita's target post-tax
return on investment of 15% in 2018.

Trustmarque has a notable public sector presence in the NHS and in the private
sector in accounting and legal services. It is Microsoft's most accredited UK
partner, holding 14 Gold Partner competencies, and is the largest Microsoft
public sector licensing specialist in the UK; providing over £100m of licenses
each year. It is also a Microsoft Cloud Solutions Provider and is Microsoft's
biggest partner in the UK for public sector cloud. The business is targeting
strong growth in strategic cloud consultancy and has identified a £5bn
addressable UK market for these cloud services, including MS O365 and MS Azure.

Capita has worked with Trustmarque for many years, as the Company was the
embedded software fulfilment partner within Capita Technology Solutions,
Capita's technology reseller and service integration business.

Andy Parker, Capita's Chief Executive said: 'This acquisition provides Capita
with a set of capabilities and expertise that complement our existing
businesses - and the mix of core reseller activity and higher value services is
a strong proposition that will sit well with our wider technology offering.
Trustmarque's 'Enterprise-as-a-Service' model will provide a number of
opportunities to build new services and deepen our existing relationships with
key partners, in particular with Microsoft.

'It will particularly enhance our growing Capita Technology Solutions business,
expanding its ability to offer innovative services to current and potential
clients. Specific specialities, such as software asset management and strategic
cloud consultancy, have strong synergies with Capita's existing propositions.'

Scott Haddow, Chief Executive of Trustmarque, said: 'We are thrilled to join
Capita and take the next steps forward in Trustmarque's development. We are now
well positioned for strong organic growth, supported by Capita's impressive
expertise, experience and scale. There are a number of opportunities for
integration - including our success selling services through G-Cloud - that
will help us to lower costs and cross sell services to customers.

'Capita's long history with Trustmarque means that the two businesses
understand each other well, and we look forward to working closely with new
colleagues to deliver the best possible services and solutions.'

                                     ENDS

*Net revenue excludes pass through agency sales, which under accounting
standards IAS18 and IFRS15 will not be recognised by Capita post completion.

For further information:

Capita plc
Tel: 020 7799 1525
Andy Parker, Chief Executive Officer
Shona Nichols, Executive Director, Communications
Andrew Ripper, Head of Investor Relations

Media enquiries

David Hendy
Tel: 020 7654 2399
David.Hendy@capita.co.uk

Note to editors

Capita is a leading UK provider of technology-enabled customer and business
process services and integrated professional support services. With 75,000
people at over 500 sites, including 94 business centres across the UK, Europe,
India and South Africa, Capita uses its expertise, infrastructure and scale
benefits to transform its clients' services, driving down costs and adding
value. Capita is quoted on the London Stock Exchange (CPI.L), and is a
constituent of the FTSE 100 with 2015 revenue of £4.7 billion. Further
information on Capita can be found at: www.capita.com.