Feeds

Serco splashes £235m on ITNet

Eyes outsourced IT

  • alert
  • submit to reddit

Boost IT visibility and business value

Serco Group, the public sector services contractor, is to acquire ITNet, the computer services firm, for £235m in cash and shares. Serco is to pay 320p per share, a premium of 10.9 per cent on ITNET's closing price of 288.5p yesterday.

ITNet is probably best known for being sacked by the Cabinet Office this summer, after failing to meet several deadlines in the £83m web hosting project. That news sent its to shares crashing below 160p. In September this year, the company blamed the loss of the deal for its poor financial performance.

Serco, which runs services for prisons and the Royal Air Force, says the acquisition will position it well to take advantage of an increase in local authority IT outsourcing.

Kevin Beeston, Serco's chairman, described the companies as "a strong fit". His counterpart at ITNet, Oliver Whitehead, commented: "ITNET fits well with Serco and the enlarged group will have a strong presence in the business transformation market."

Serco will also spend £113m in cash ot buy US defence contractor, RCI. That deal will mean 12 per cent of Serco's business will be in the US. ®

Related stories

ITNet makes loss, calls lawyers
ITNet in Cabinet contract blow
ITNET bags £83m Cabinet Office gig

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.