Capita acquires Health and Government divisions of Tribal

14 April 2011

Capita Symonds’ parent company - The Capita Group plc (`Capita') - has entered into a conditional agreement to acquire the health and government divisions of Tribal Group Plc (`Tribal') for a cash consideration of £15.8 million on a cash-free, debt free basis, including a deferred consideration of up to £2.5 million. The acquisition adds key new capabilities to Capita's health and consulting businesses. The acquisition is conditional upon the approval of Tribal shareholders.

Tribal's health division includes expertise in clinical coding, health informatics and support for the establishment of commissioning consortia. Tribal's government division includes support for environmental, home and foreign policy, and consultancy services for public housing, agribusiness and devolved administrations.

Tribal's health and government divisions made a pro forma operating loss of £ 0.9 million on turnover of £71.5 million in the year to 31 December 2010.

The acquisition adds further depth and breadth of expertise to Capita's existing services, both for the health market and the wider public sector. Capita's services include running the NHS Choices programme, occupational health and medical screening, health informatics and the administration of both the Information Standard for healthcare information and the payment of National Health Service patient fees to dentists on behalf of NHS BSA.   

...Our aim is to offer a comprehensive menu of services that cover the full range of functions that GP commissioners will be required to fulfil...

As part of this wider offering Capita Symonds provides a range of services to the health market and wider public sector covering design, business transformation, estates strategy and rationalisation, and facilities management.

Commenting on the deal, Paul Pindar, Capita Chief Executive Officer, said: 'The government consulting acquisition will strengthen our proposition for service delivery and technical support across central and local government, including policing, justice and housing. In addition, Tribal's health expertise fits with our strategic goal to provide support services to GP commissioning consortia. This will allow us to supplement our propositions in patient engagement, HR, payroll, finance, IT and estates services with more direct commissioning support services like invoice validation, health needs assessment and risk stratification. Our aim is to offer a comprehensive menu of services that cover the full range of functions that GP commissioners will be required to fulfil.'

Tribal's health and government divisions have around 340 staff, primarily in London, Belfast and Dublin.