2nd Feb 2007 10:30
Capita Group PLC02 February 2007 2 February 2007 CAPITA ANNOUNCES ACQUISITION OF HARRY WEEKS TRAVEL & LEISURE The Capita Group Plc ("Capita") announces that it has acquired Harry WeeksTravel & Leisure Group Limited ("Harry Weeks"), a business travel softwareprovider via its Evolvi and Travelpackonline software products. Capita hasacquired the entire share capital of Harry Weeks for a cash consideration of£21m. A further £12m, payable in cash, will be paid over the next four yearssubject to the business achieving certain performance targets. Following Capita's 2005 entrance into the UK travel management market, via itsacquisition of Lonsdale Travel Ltd, Harry Weeks will further enhance Capita'sproposition to the business travel market. Harry Weeks provides business travelsoftware and solutions direct to UK organisations and government departments andalso to travel management companies. In addition to its rail ticketing issuesystem, featuring the company's innovative software (Evolvi andTravelpackonline), the company offers a travel management service and anemployee travel benefits service (Leisuretime). "This acquisition provides us with an exciting new proposition in the railtravel market," commented Paul Pindar, Chief Executive of Capita. "Last year weidentified travel management as an area of major spend where we can add value toour public and private sector clients by offering effective solutions andoutsourced services. With our growing portfolio of travel management services,we believe this will be an interesting market for us going forward." The UK domestic business travel market is worth £6.8bn, of which c.16% is railtravel. The rail market is forecast to grow at between 3.5% and 5.5% p.a. withbusiness rail travel expected to grow faster. Harry Weeks has a strong andgrowing position in this market with a product portfolio of online railticketing solutions that support both corporate customers direct and travelintermediaries. Corporate clients who require self-service when makingreservations or printing tickets benefit from reduced costs as lowest costtravel options are automatically selected and leakage is reduced. Travel intermediaries and train operating companies face current rail servicesdistribution technology being phased out by the end of 2007. The combination ofEvolvi technology with the process expertise of Capita provides companies withan alternative distribution solution to meet the needs of their customers whilstalso delivering increased efficiencies to their businesses. Harry Weeks' un-audited accounts for the year ended 31 October 2006 recorded netprofit before tax of £0.5m on turnover of £3.6m. As at 31 October 2006 HarryWeeks had un-audited net assets of £0.7m. Evolvi and Travelpackonline weredeveloped by the company and sales have grown rapidly since their introductionto the market in April and September 2005 respectively. Material growth isforecast in 2007. Harry Weeks operates out of Orpington, Kent and the entire workforce of 70employees will now transfer to Capita. Grahame Weeks, Managing Director of Harry Weeks Travel & Leisure, said, "Bothcompanies have a strong heritage and we are confident that as a combined entitywe will continue to drive the growth of the business and add value to ourclients. We believe that this move holds many career opportunities for ourvalued employees." -ends- For further information please contact: Shona Nichols Corporate Communications Director The Capita Group Plc 020 7799 1525 Capita Press Office 0870 2400 488 Notes to editors: The Capita Group Plc is the UK's leading provider of integrated professionalsupport service solutions. The Group's service capabilities encompass customerservices, financial services, human resource services, software services,systems and strategic support and property services delivered to both publicsector and private organisations. With over 26,000 employees at more than 250offices across the UK and Ireland, Capita is quoted on the London Stock Exchange(CPI.L), and is a constituent of the FTSE100 with revenues for 2005 of £1,436million. Further information on The Capita Group Plc can be found at: www.capita.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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