Outsourcing giant Capita has announced a takeover of IT software provider, IBS OpenSystems, in a deal worth £77.7m. The group said last week it would buy a 70% stake in the fellow local government contractor. IBS currently supplies IT systems and services to more than 230 councils and housing associations. Last year, the firm had a turnover of £21m. ‘IBS's customer base and extensive range of products and services add to our existing offerings for local authorities and housing associations,' explained Capita chief executive, Paul Pindar. ‘This acquisition will give us greater breadth and depth of expertise with which to assist existing clients and attract new ones. ‘In addition, IBS works with a number of local authorities and housing associations which complement Capita's network of customers,' added Mr Pindar. ‘We believe our established strength in the UK outsourcing market will add further credibility and scale to IBS, allowing it to service a wider range of potential customers and projects.' IBS chairman, Tim Curtis, said: ‘The IBS board believes the offer from Capita of 187.85p in cash per share provides both an attractive premium and certainty of value for IBS shareholders, especially against the current backdrop of uncertainty in general economic conditions. ‘We believe that the Capita group has the financial resources and expertise to invest actively in the future development of the IBS business, thus enhancing IBS's market position for the benefit of its customers and employees.' The MJ reported last week (5 June) that Capita's joint venture with Birmingham City Council had been appointed by the local authority to run its call centre operations in a deal worth £110m over eight years.
