Capita plc has acquired travel management firm Expotel for a consideration of £16m on a cash-free, debt-free basis.
The acquisition will add reach to Capita's existing operations in the business travel market, and the move means that it now has two of the UK’s largest hotel booking agents under its business travel portfolio, following the acquisition of BSI for £42.5m in 2010.
Expotel, which has offices in Stockport, Leeds and Glasgow, made an operating profit of £3.2m and a turnover of £16.3m for the year ending 31 October, 2011. The company also owns Venues Event Management and has a roster of current clients that includes National Grid, Virgin Media, the Scottish government and BP.
Trevor Elswood, managing director of Capita’s travel business, said: "This is great news for current and future customers of Expotel, BSI and Capita Business Travel who will gain significant benefits in service and choice as we align these leading providers. We have significant scale and expertise covering rail, air and accommodation along with, now, extensive experience in venue and event management which positions the business to take advantage of the fast growing meetings market.
"The acquisition is also consistent with our strategy of bringing together the industry’s best specialists to create a unique UK travel management proposition in addition to offering leading specialist services in each individual area.”
Paul Pindar, chief executive of Capita plc, added: “The addition of Expotel will bring both significant additional expertise and greater scale to our UK-focused corporate travel business. Expotel also brings considerable experience in venue and event management, which, alongside our existing business, creates a proposition of genuine scale and depth in this fast growing area of the market.”
The combined company will employ nearly 900 staff in 10 locations.
Pictured: Trevor Elswood