Skillsgroup buy takes it into top UK trainer spot

Skillsgroup has made its third acquisition within a month with the purchase of the UK education and training division of Cap Gemini for #32.5 million in cash.

The Lancashire company has spent more than #70 million to speed up its transition from product-based reseller to computer services provider.

Last month it bought datacoms specialist The Knowledge Centre, and IT consulting firm Pontis Consulting.

The Cap Gemini training and education division, which last year generated a pre-tax profit of #3.2 million and revenue of #16.5 million, will be integrated into the QA Training arm within Skillsgroup's resource management unit.

In a statement, David Southworth, executive chairman at Skillsgroup, said: 'These recent transactions significantly enhance the earnings potential of Skillsgroup, moving us closer to our target of 10 per cent net operating margin. At the same time, this increases the quality and profile of the company's future earnings streams.'

He added: 'The addition of Cap Gemini's education and training division makes QA Training the largest player in the UK IT skills training market by a considerable margin.'

The Cap Gemini division provides IT skills training to corporate clients and Cap Gemini UK itself. As part of the sale to Skillsgroup, Cap Gemini UK has agreed to use the skills-development services of the education and training division for two years as exclusive supplier, followed by a further two years as preferred supplier.