Capita beefs up security offering with Network Technology Solutions buy

Plenty of money in security...

Outsourcing giant Capita has acquired IT security specialist Network Technology Solutions (UK), a privately-held security reseller that provides support and managed services across the private and public sectors.

Network Technology Solutions clients include local authorities such as North Yorkshire County Council and Trafford Council, health care organisations such as Guy's and St Thomas' NHS Trust in London and financial services organisations such as Yorkshire Building Society. It also boasts clients in central government and retail.

Peter Hands, executive director of Capita IT Services, said: "Network Technology Solutions will strengthen our security capability and ensure we continue to meet the needs of our clients across the UK."

The company did not immediately respond to questions on the purchase price.

Capita has been on the acquisition trail, picking up resource planning provider Retain International, a provider of resource planning, scheduling and management software. In 2013 it acquired a 51 percent stake in ITIL and PRINCE2 methodologies from the government, as well as legal specialists STL Technologies and Northgate Managed Services.

The company has also won a stream of contracts this year, picking up a five-year deal to manage John Lewis' online contact centre for £93.5m and a £400m deal to run the Defence Infrastructure Organisation IT for the next decade, a 10-year deal with Cornwall Housing and a £110m NHS Scotland network contract. Capita also won back the Transport for London Congestion Charge contract from IBM, in a deal worth £145m over five years.

However, analyst house TechmarketView warned that Capita's results and apparent success hides "inconsistency under the covers," with "divisions like IT services, insurance & benefits and health & wellbeing either displaying sluggish growth, or even declines. At the same time, group margins continue to be put under pressure."

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