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By | John Oates 11th March 2008 11:58

Capita buys way into ComputerLand

Two become one

Capita is offering £28.9m to buy independent services firm ComputerLand.

The deal looks set to go ahead because Capita has already received irrevocable undertakings to accept the deal from 43.9 per cent of ComputerLand's shareholders.

Capita is best known for its public sector contracts like that for London's congestion charge collection, which it recently lost to IBM.

The takeover bid offers a 31 per cent premium on ComputerLand's share price on the day before the offer was made.

ComputerLand customers include O2, British Sugar, Egg, Experian, Heinz, and Ikea. The firm turned over £33.9m and made a profit of £1.45m for the six months ended 31 October 2007. Service revenues grew 13 per cent in the period to £11.4m.

Capita said the takeover would complement its existing managed services business, which it hopes to grow.

ComputerLand will keep its Nottingham headquarters.

Capita shares were up very slightly on the news. ®

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