Capita buys into managed print with RDS deal
Services titan snaps up London print VAR and Sheffield app developer Technophobia in characteristic shopping spree
Capita has muscled its way into the managed print arena by laying out up to £40m to acquire London-based Right Document Solutions (RDS).
The acquisitive software and services monolith has also agreed a £6.3m buyout of Sheffield web app developer Technophobia.
City-based RDS resells print gear from manufacturers including HP, Ricoh, Kyocera, Xerox and Canon. It also offers document consultancy and managed print services and has been in business for 23 years. During FY10, it netted a pro forma operational profit of £4.4m on sales of £12.2m.
Capita has snapped up the firm on a cash-free, debt-free basis for an initial £30m and a deferred payment of £10m. The IT services powerhouse claims the deal will add complementary services to its existing design, bulk print and document management skills.
Paul Pindar (pictured), chief executive of Capita, said: "The UK market for print solutions has been estimated to be worth around £650m in 2010 and is shifting increasingly towards managed print services. The acquisition, alongside Capita's existing print and document management services, will ensure that Capita is well positioned to participate comprehensively in this market."
Web app developer Technophobia also joins the Capita stable today in a £6.3m deal. Its client roster includes Co-operative Bank, Pizza Express and the Technology Strategy Board. Technophobia managing director Emma Marshall will remain in place, reporting to Paul Dawson, Capita's business director for systems integration.
"Technophobia has bucked the trend by growing significantly despite the challenging market conditions, so it is an exciting acquisition for us", said Dawson. "Competition is tougher than ever for the private sector and having a web site that is easy to navigate, intuitive and integrates neatly with other channels of communication - be that internal or external - is essential."