Feeds

Serco splashes £235m on ITNet

Eyes outsourced IT

  • alert
  • submit to reddit

Top three mobile application threats

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

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.