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Following hot on the heels of its acquisition of Call Centre Technology (see Capita acquires call centre partner), Capita has bought healthcare recruitment firm Team24 Limited for a total potential of £26m, on a cash free debt free basis. Surrey-based Team24 employs 80 staff and provides short notice and temporary placements for c4,000 doctors and nurses for the NHS, prisons, doctors' surgeries and private practices. It also operates under a number of framework agreements, including the London Regional Nursing Framework (LRANF). Capita is paying 0.8x Team24’s revenue of £32.7m made in the year to 31 March 2011, and 6x pro forma operating profit.
BPO M&A is becoming a hot area right now. Rival Serco is also seeking M&A opportunities (see Serco buys Intelenet for offshore BPO entry), but while Serco is looking for significant international expansion in new markets, Capita is sticking to its knitting in growing market share in the UK. We know which strategy we would back!
