Feeds

Capita forced to dismember benefits software biz

Competition Commission cracks knuckles

Top 10 endpoint backup mistakes

Capita must sell off a chunk of IBM OPENSystems (IBS), a recent acquisition, on competition grounds. If it can't get a sale it must flog the entire IBS business, bought last year for £78m.

Today the British BPO and computer services group issued this statement, on receipt of the Competition Commission's final ruling.

"The Competition Commission has confirmed that the completed acquisition by Capita of IBS is expected to result in a lessening of competition in the market for revenues and benefits software systems, used by local authorities to collect council tax and distribute benefits. The Competition Commission does not have concerns about the social housing software market that IBS also serves."

In other words, The Competition Commission's position remains unchanged from April, when the regulator issued a provisional report on its findings.

At the time, Christopher Clarke, Inquiry Group chairman, wrote:

This merger combines two closely competing suppliers of revenues and benefits software to local authorities, leaving only one other supplier actively competing for business. In a stable market with little prospect of entry by new suppliers, our provisional conclusion is that the enlarged Capita revenue and benefits business will be able to take advantage of the lack of competition, for example by increasing prices or reducing levels of service to its customers.

We consider it likely that the adverse effects of the merger will have an impact on all customers, whether they are in the process of tendering for new revenues and benefits software or already have a contract for such software in place.

The UK benefit software market is worth £20m a year, according to the Commission.

Capita says it is in early talks with interested parties over the partial divestment. ®

5 things you didn’t know about cloud backup

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
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.
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.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?