Capita traditionally has grown by acquisition, but the deals are getting bigger — and riskier.
In February the outsourcer announced the €210 million purchase of avocis, a German call centre business. The purchase of Xchanging will be for £412 million, assuming that the present offer at 160p a share goes through, or it could cost more if Capita is forced to raise its offer.
Capita started the process yesterday by posting the formal offer document to Xchanging shareholders. Apollo Global Management, the American private equity firm, has up to 53 days to make an offer of its own — and it is known to be considering a bid at 170p. The Xchanging share price, up 1p at 167p, suggests the market thinks that a higher