Capita Buys SouthWestern For €35m
London-based outsourcing firm Capita has acquired SouthWestern Business Process Services Limited from private equity group Ion Equity for €35m on a cash-free, debt-free basis. SouthWestern is the leading domestic provider of outsourced managed services in Ireland.
SouthWestern, whose clients include the Bord Gáis, eircom and two government departments, provides customer relationship management, financial shared services, and data processing and inspectorate services to private and public sector organisations, from offices in Ireland, the UK and Poland.
Andy Parker, Capita's chief executive, says that his firm has an established presence in Ireland, with more than 1,000 employees delivering services across the financial services and other sectors.
“This deal will significantly enhance Capita's presence in the Irish business process outsourcing market, which is estimated to be worth €1bn and growing by 5% per cent each year,” he adds.
Parker describes SouthWestern as a highly respected outsourcing company with an excellent private and public sector client base. “It has particularly strong relationships with organisations in the agricultural sector, which is a growing and new market for Capita.
“The acquisition will provide Capita the opportunity to provide new services to SouthWestern's existing clients and to continue to grow both its customer base, and job opportunities.”
Neil O'Leary, Ion Equity chairman and outgoing SouthWestern chairman, says that Ion is proud to have led SouthWestern during a period of strong growth.
He adds: “It was an entrepreneurial business that employed 180 people when we acquired it, but through sustained hard work from a highly skilled workforce and an unwavering focus on delivering for its clients, it is now the number one in its key business areas, employing 1,000 people and growing strongly.”
SouthWestern CEO, Jim Costello, regards the acquisition as a vote of confidence in his firm's business, which he says will enhance SouthWestern's ability to grow.
SouthWestern's 1,000 employees are primarily based across three sites in Cork, as well as one in Lodz, Poland, together with smaller operations in Dublin and Milton Keynes. (August 2014)