Feeds

Serco splashes £235m on ITNet

Eyes outsourced IT

  • alert
  • submit to reddit

New hybrid storage solutions

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

New hybrid storage solutions

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
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.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.