Capita acquires Capmark's European financial services units
05 June 2009 | 4517 views | 0
UK outsourcer The Capita Group has acquired the European loan, asset management and commercial mortgage backed securities (CMBS) administration services of US-based Capmark Financial Group for a cash consideration of approximately £10 million.
The acquired businesses provide administrative services for CMBS securitisations, commercial mortgages, commercial property loans and asset managers from offices based in the UK, Ireland and Germany.
On a proforma basis, Capmark Services Europe made an operating profit for the 12 months to 31 December 2008 of approximately £3.8 million on turnover of £11 million.
Paul Pindar, The Capita Group chief executive says the deal underscores the company's commitment to the financial services industry, which currently comprises around seven per cent of its £2.4b group revenues
"The acquisition fits naturally within Capita's financial services administration operations and will provide us with added breadth and depth of expertise," he says. "The increased capacity, particularly in the Republic of Ireland, will help ensure our continued growth in this sector and we expect the acquisition to bring clear benefits to both new and existing customers.'
The acquired companies, which have approximately 110 employees, will become part of Capita Fiduciary Group, which has had a presence in Ireland since May 2007. The Capita Group also has other business operations in Dublin with Capita Registrars and Capita Financial Group.