Following on swiftly from the announcement on Tuesday that Capita is to acquire AIB’s International Financial Services business (see Capita diversifies with AIB’s financial services business), the Group has today announced that it will also acquire AIBJerseyTrust Limited (AIBJT) for a cash consideration of £12.5 million.
With turnover of £7.7 million (and an operating profit of £2 million) in the year to 31st December, AIBJT is less than a third the size of AIBFS. Nonetheless the impact on Capita’s business is similar in that by integrating AIBJT into the Capita Fiduciary Group, it is expanding its financial services business as well as adding further employees outside the UK & Ireland (this time in the Netherlands and Luxembourg).
We doubt this is the last we will hear of Capita realising its international expansion ambitions; it will be fascinating to watch how the Group manages its new overseas business and, more importantly, how it impacts on profit margins over the coming months and years.