21st Mar 2005 07:00
Serco completes acquisition to enhance US market position Serco Group plc ("Serco") today (21 March 2005) announces that, having obtainedall necessary regulatory approvals, it has completed the $215m (‚£113m*)purchase of US-based RCI Holding Corporation ("RCI").RCI is a leading supplier to the US Federal Government. This acquisitionsignificantly increases Serco's competitive position in the world's largestservice contracting market.RCI's key services include IT services, systems engineering, strategicconsulting and HR focused business process management. Its primary market - theDepartment of Defense - represents the largest portion of Federal spending,accounting for more than 75 per cent of total contract amounts.RCI brings enhanced technology capabilities to Serco North America. Its strongcustomer relationships with the US Federal Government complement Serco NorthAmerica's predominantly state and local customer base. In addition, RCIprovides Serco with deep understanding of the various contracting models usedby US Federal authorities.Serco will integrate RCI with its existing North American operations and theenlarged business will have the critical mass to compete more effectively withlarger tier-one service providers in the US and provides a strong platform topromote Serco's global capabilities. The inclusion of RCI, with expectedrevenues in 2004 of $289m, more than doubles Serco's North American turnover.RCI was acquired for cash, on a debt free basis, and is expected to be earningsaccretive for Serco in 2005.Serco Chief Executive Christopher Hyman said: "North America is one of ourchosen markets. Opportunities in the Federal market are substantial forcompanies with proven capabilities and qualifications and the US governmentintends to further increase the purchase of contracted services. Thisacquisition will give us deeper and broader access and will enable faster andmore profitable growth."* All US dollar amounts converted at $1.90 to ‚£1 - Ends - For further information, please contact:Serco Group plc +44 (0)1256 745 900Dominic Cheetham, Corporate Communications DirectorRichard Hollins, Head of Investor RelationsNotes to editors:Serco is one of the world's leading service companies. It helps national andlocal governments and commercial clients around the world improve theirservices by successfully managing organisational design and change.ENDSERCO GROUP PLCRelated Shares:
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