Feeds

Serco splashes £235m on ITNet

Eyes outsourced IT

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.