2nd Apr 2007 07:02
Capita Group PLC02 April 2007 2 April 2007 CAPITA ACQUIRES CMGL GROUP LIMITED The Capita Group Plc ("Capita"), announced today that it has acquired CMGL fromSovereign Capital Partners LLP. CMGL is a leading provider of outsourced claimsand insurance management services to FTSE quoted corporations, general insurers,Lloyd's underwriters and London Market companies. The consideration is £32 million on a cash-free/debt free basis. CMGL employsmore than 440 staff based in London, Cheltenham, Birmingham and overseas, andprovides professional claims and insurance management services to a wide rangeof insurance and corporate clients. The acquisition will build on CapitaInsurance Service's existing London Markets capability. CMGL's consolidated audited accounts for the year ended 31 December 2005,recorded an annual turnover of £41.49 million and operating profit of £1.23million. As at 31 December 2005 CMGL had consolidated audited net assets of£12.05 million. Commenting on the deal, Paul Pindar, Capita Chief Executive said: "Establishedin 1993, CMGL has grown consistently through organic expansion and theacquisition of specialist companies. Its acquisition will allow us to offer ourcustomers complete end-to-end services in both the live and run-off markets.Building this sort of capability is particularly important given the challengesset out in the London Market reform as well as the cross market desire tointroduce truly world class business processes. Capita-CMGL will work hard toensure that its clients and the London Market have real choice when it comes tothe range and depth of support they need to succeed in a growing market. Weintend to merge CMGL with our existing London Market operations, which willcreate significant economies of scale and will help to ensure that Londonremains at the heart of the world's insurance industry." Jerry McArthur, managing director of CMGL said "We welcome this deal and see itas a marriage of two very complementary businesses. Being an integral part of aFTSE100 company allows us to offer a wider portfolio of bespoke services andsolutions. It also fundamentally enhances our capacity to support the LondonMarket and all our clients with large scale business transformation. Thebringing together of two well-established businesses provides our staff withexciting opportunities to grow their skills and careers over the long term." The deal has received approval from the FSA and Lloyd's. -ends- For further information please contact: The Capita Group Plc +44 (0)20 7799 1525Paul Pindar, Chief ExecutiveShona Nichols, Corporate Communications Director Press enquiries:Caroline MooneyCapita press officeTel: 020 7654 2152/0870 2400 488 (out of hours) The Capita Group Plc is the UK's leading provider of integrated professionalsupport service solutions. The Group's service capabilities encompass businessprocess outsourcing, (BPO), customer services, administration and support, humanresources, ICT, property consultancy, finance & treasury and consultancydelivered to both public sector and private organisations. With 27,800 employeesat more than 250 offices across the UK, Channel Islands, Ireland and India,Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent ofthe FTSE100 with revenues for 2006 of £1,739 million. Further information on The Capita Group Plc can be found at: www.capita.co.uk Capita Insurance Services is the UK's leading provider of business supportservices to the insurance industry offering professional services, operationalsolutions and strategic partnerships for insurers, brokers, affinities,corporates, government and the London market. The company is an FSA authorisedrepresentative and supports the complete insurance lifecycle from claimsreception and policy administration, to specialist services including legalservices, medical evidence services, complex loss adjusting, supply chainmanagement and the delivery of fully-managed operational solutions both onshoreand offshore. Ranked No.1* for customer service in the Insurance Services marketin three consecutive years, Capita Insurance Services administers in excess of£12bn insurers' liability and employs more than 4,400 staff across an integratednetwork of UK business centres. www.capitainsuranceservices.co.uk Sovereign Capital Partners LLP (Sovereign") is a leading UK private equity buyand build specialist, with a strong track record and specific expertiseincluding healthcare services, education and training, financial servicesoutsourcing and various sub-sectors within the support services sector. Foundedin 1988 and with £450m under management, Sovereign is focused on investing inlower mid-market UK companies requiring £5m-£20m of equity. Sovereign CapitalPartners LLP is regulated and authorized by the FSA. www.sovereigncapital.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Capita