19 August 2017
Find out more

Barclays' £15 million document outsourcing spin off sold for £130 million

13 April 2004  |  5910 views  |  0 Barclays HO

Edotech, the former inhouse statement printing operation of Barclays Bank, has been sold to business process outsourcing group Astron for £130 million - £115 million more than its MBO valuation four years ago.

Edotech was bought out by management in May 2000 through a £15 million MBO, in a transaction led by Barclays Private Equity. The UK bank invested £12 million of its own money for a majority stake in the firm. The management buy-out was the first of its kind in the banking sector, freeing up Edotech to attract additional third party business.

Since the MBO, Edotech has seen a six-fold growth in operating profit from £2 million in 2000 to c.£12 million in 2003. The combination of Edotech and Astron is expected to create a transactional document printing operation large enough to challenge the broader IT outsourcing groups.

David Weymouth, Barclays Chief Information Officer, describes the sale to Astrom as "a highly successful conclusion to what was an innovative strategy of backing a management buy-out of a non-core business for Barclays".

He says the current valuation of the business is "far beyond initial expectations", with the sale to Astron valuing Barclays' initial £12 million investment at £75 million.

News of the deal was slipped out on Thursday - just ahead of the four-day Easter holiday break.
KeywordsOUTSOURCING

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Barclays outsources trade finance processing to ABN Amro

Barclays outsources trade finance processing to ABN Amro

19 February 2004  |  9116 views  |  0 comments
Barclays outsources ATM network to Wincor Nixdorf

Barclays outsources ATM network to Wincor Nixdorf

21 January 2004  |  7794 views  |  0 comments
Barclays to shift software development offshore in Accenture outsourcing

Barclays to shift software development offshore in Accenture outsourcing

17 December 2003  |  15231 views  |  0 comments
Document outsourcing saves Woolwich £2 million a year

Document outsourcing saves Woolwich £2 million a year

24 September 2003  |  3886 views  |  0 comments
Barclays Bank extends edotech document production contract

Barclays Bank extends edotech document production contract

02 September 2003  |  5033 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comvisit www.dorsum.eudownload the paper now

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
8285 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7518 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
6586 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
6196 views 1 | 5 tweets | 3 linkedin
Apple sidelined as Beijing transit system launches payments appApple sidelined as Beijing transit system...
6055 views comments | 11 tweets | 9 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job