Privately-held software and services firm Civica has made another bolt-on acquisition in the UK public sector space. It’s acquiring Northampton-based SME Cave Tab for an undisclosed sum. The document and records management specialist provides a range of services from outsourced document and post room services, to file tracking solutions and archiving. Much like Civica, Cave Tab has customers across the public sector in the UK, including in local and central government, social housing, health care, enforcement and defence, together with a large commercial base.
The addition of Cave Tab is a typical Civica move: a small acquisition of a known entity (the two already work together, for example at London Boroughs of Barnet and Tower Hamlets) that complements and extends its capabilities in a relatively ‘hot’ area of the public sector market. In particular, Cave Tab’s Electronic Post Room service fits nicely with Civica’s ambition to do more in business process services. This EPR – not to be confused with electronic patient records - can cut the cost of inbound mail processing (apparently by ‘up to 40%’). This ought to ensure that it’s something cash-strapped UK public sector organisations are prepared to invest in despite pressure on their budgets. All things considered, a sensible purchase that should be a very good fit with Civica as it puts more emphasis on delivering business process services, particularly in local government niches where it has strong IPR.