Capita has acquired British networking and connectivity services provider Updata in a deal worth £80 million, continuing a recent acquisition spree by the outsourcing firm.
Reigate-based company Updata, which employs 160 staff in six offices across the UK, will now become part of Capita’s IT Services Division following the debt-free deal.
Updata provides services to numerous private sector firms, with financial services customers including HSBC and RBS, as well as public sector clients.
It already has a partnership with Capita as part of a £100 million contract to deliver the Scottish Wide Area Network (SWAN) project, a single public services network to connect 4,600 sites across the region.
The two firms have also worked together in Scotland on contracts for local authorities in West Dunbartonshire, North Ayrshire, Fife and East Lothian since 2011.
Following the acquisition Capita expects that Updata will increase its projected revenues from £41.8 million in 2014, to £74 million during 2015.
“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 Andy Parker, Capita chief executive. “As part of Capita, Updata will strengthen our network capability and ensure we continue to meet the needs of our clients across the UK.”
The acquisition follows a string of recent buys by Capita. The company acquired Retain International, a provider of resource planning, scheduling and management software, in February. It subsequently purchased IT security specialist Network Technology Solutions, a privately-held security reseller that provides support and managed services across the private and public sectors, the following month.
Last year the company bought Northgate Managed Services (NMS) from Northgate Information Solutions for a "knock-down price" of £65 million, and legal specialist STL Technologies for an undisclosed sum to boost its criminal justice offering.