LONDON (Alliance News) - Capita PLC Tuesday said it has agreed to buy software company AMT-SYBEX Group Ltd for up to GBP105 million, a deal that it hopes will give it an advantage in its key utility and transport markets and allow it to expand AMT's offerings into its other markets.
In a statement, the outsourcing company said it will pay an initial GBP82 million for the business on a cash-free, debt-free basis, and could pay up to GBP23 million more if AMT reaches specific profit targets over the next 12 months,
AMT provides software for mobile devices and data management software in the utilities and transport sectors and its clients already include the UK's so-called "big six" energy companies as well as National Grid PLC, Network Rail, and Transport for London. The software manages customer data and enables the company employees to work anywhere.
"There are therefore powerful synergies with Capita's existing footprint as it works within the utilities markets to drive transformational change, improve efficiency, use data analytics to improve customer attraction and retention and get businesses and customers better connected through using digital and other channels more effectively," Capita Chief Executive Andy Parker said in a statement.
"In addition, AMT's products and services, particularly as part of a wider Capita offering, have valuable applications in a range of other sectors, including health, defence, oil and gas and the finance and insurance markets," Parker added.
AMT employs around 250 employees based in Dublin, Belfast, Glasgow and Letchworth. It is forecasting an operating profit of GBP13 million on revenue of GBP45 million in its current financial year to January 2015, Capita said.
Capita shares were up 0.3% at 1,077 pence early Tuesday.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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