Capita's state IT deal
OUTSOURCER Capita has teamed up with the Government to commercialise the state’s IT and training programmes, which could provide a lucrative revenue stream for both parties.
The FTSE 100 company is paying the Cabinet Office £10million up front with a further £9.4million a year over three years for a 51 per cent stake in the joint venture that will own a portfolio of intellectual property rights including the Prince2 project management training scheme and ITIL, a leading IT services standards system.
The products are widely used in the public sector and increasingly across private sector organisations and internationally.
The deal is expected to triple current £40million annual revenues by the tenth year through developing more products and selling them into new markets.
The commercial, technical and innovation skills that we bring to the venture will help create a thriving business
Capita chief executive Paul Pindar said: “The commercial, technical and innovation skills that we bring to the venture will help create a thriving business capable of delivering value to all parties. It will create a strong and growing market for learning, accreditation and examination organisations.”