Equistone divests avocis to Capita for €210m

Capita will acquire the company in an all-equity transaction. It stated the purchase will enable it to scale its model in the DACH region, having made two acquisitions in the last six months. It sees significant opportunity for growth in Germany, where the business process outsourcing market is more fragmented than in the UK. Capita estimates the German market to have been worth €19.5bn in 2014 and to be growing at 6% annually.

The three companies will form a new division, which will be led by Capita joint chief operating officer Vic Gysin.

Previous financing
Equistone, then Barclays Private Equity, acquired a majority stake in Premium Communications in October 2007. The management team reinvested and retained a minority stake in the business.

Company
Founded in 2002, Premium Communications was a communications service provider that combined the brands adm.group, BEE Company, Telag Company, Sim Communication Centre, Dima Systems and MediCompany. The companies were united in 2011 under the name avocis.

The company has 6,500 employees across 13 locations in the DACH region. It generated revenues of €210m in 2014. Germany accounted for 53% of its turnover, while Swiss operations accounted for the majority of the remainder. It saw EBITDA of €29.8m, up from €23.3m in 2013.

Capita is an outsourcing and business management services company based in the UK. It has 66,000 employees across 400 locations in the UK, Europe, India and South Africa. It generated £3.9bn in turnover in 2013.

People
Andy Parker is CEO of Capita. Marcus Meloni is CEO of avocis.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• DACH
• Exits
• Industrials
• Switzerland
• Equistone Partners Europe
• Unq2015Mar