Capita buys Updata Infrastructure

IT services giant Capita makes its second channel acquisition in the space of a fortnight, buying up networking reseller Updata for £80m

This article can also be found in the Premium Editorial Download: MicroScope: MicroScope: April 2014

Barely two weeks after it acquired security and managed services player Network Technology Solutions, Capita has opened its chequebook again to buy network services player Updata Infrastructure for £80m on a cash free, debt free basis.

Surrey-based Updata specialises in networking and connectivity services in the public sector, and claims a vendor- and supplier-agnostic approach enables it to offer higher value, best-of-breed services to its customers.

Its suppliers include BT Openreach, Virgin Media Business, TalkTalk, Level3, Easynet and Tata Communications, with key customers including Bury, Bedford and Peterborough Councils.

MD Richard Bennett explained that having earned the trust of some of the UK’s “most progressive” councils, he felt that “as an SME we realised that we would struggle to continue our growth in terms of capabilities and market opportunities”.

“We believe that being part of the Capita family provides both of us with the opportunity to leverage our respective domain expertise and market relationships to provide even more compelling managed network solutions to the Public Sector.”

Updata, which employs 160 across six sites, is set to make an operating profit of £5.6m on sales of £41.8m in its current financial year, which will end on 30 June. In a statement Capita said it hoped to grow the business to generate operating profits of about £12m on sales of about £74m by the end of calendar 2015.

The two firms had previously worked together in Scotland on contracts for authorities including Fife and East Lothian, and are currently collaborating on a framework contract to deliver the Scottish Wide Area Network (SWAN) a £325m contract to provide a single public services network to connect over 4,600 schools, hospitals, GPs and local councils across Scotland.

In a statement, Capita chief exec Andy Parker said: “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.

“As part of Capita, Updata will strengthen our network capability and ensure we continue to meet the needs of our clients across the UK.”

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