Capita to acquire AIB International Financial Services

Capita to acquire AIB International Financial Services

The Capita Group Plc has agreed to acquire the international financial services business of AIB for a cash consideration of £29 million, on a cash free, debt free basis.

Owned by the AIB Group, AIBIFS provides outsourced services, including corporate administration, treasury management, securitisation and middle and back office services to financial institutions and corporate clients. On completion the business will integrate into Capita's investor and banking services division, which employs approximately 2,000 people across the UK, Ireland, Europe, the Channel Islands and India.

On a proforma basis, AIBIFS made an operating profit for the 12 months ended 31 December 2010, after adjusting for certain overheads, of £6.2 million on turnover of £24 million.

Commenting on the acquisition, Paul Pindar, Chief Executive of the Capita Group Plc, said: "The acquisition of AIBIFS is an excellent strategic fit for Capita. It fully complements our existing business in terms of services, client base and professional staff, while also providing Capita with the opportunity to further develop its client proposition within the financial services industry. The acquisition will strengthen our service offering to both clients and business prospects alike. We look forward to welcoming all clients and staff to Capita."

AIBIFS is headquartered in Dublin, where there are approximately 100 employees, with an additional 60 members of staff across other locations in Switzerland, Luxembourg and Hungary.

The deal is subject to approval by the appropriate regulatory authorities in Ireland, Luxembourg and The Netherlands.