Capita buy Synetrix

[Face-Man]

Capita (aka SIMS) have purchased Synetrix for £75 Million...

Capita buying Synetrix for $121 million from Apax - MarketWatch

Synetrix is forecasting an operating profit for the June 2010-endnig year of 10.9 million pounds on revenue of 73.7 million pounds

I guess that kind of profit can't be bad

[vikpaw]

Synetrix the people behind certain learning platforms right?
interesting move...

[BandyQuill]

does this mean that our internet is now provided by capita... im not filled with confidence anymore XD

[sparkeh]

That is interesting.

I wonder if this will have any significant impact on services supplied by Synetrix (eg embc broadband and other RBCs) as take overs can mean job losses and suchlike. In truth the embc service has been pretty good of late and it would be a shame to have this effect the, seemingly, hard fought for stability.

Though of course take overs can be positive, eg things like Leicestershire's remote MIS backup might go a bit smoother if Capita provide the MIS and the network infrastructure being used?

[vikpaw]

However won't SIMs and the section that Synetrix will become be separate and autonomous? Getting two divisions like that to work together is as hard when they are under the same parent umbrella as when they are separate entities.

I'd have thought external customer pressure would have more effect than internal pressure from management.

[sparkeh]

However won't SIMs and the section that Synetrix will become be separate and autonomous? Getting two divisions like that to work together is as hard when they are under the same parent umbrella as when they are separate entities.

Possibly but I would imagine getting the two departments to talk might be easier than two completely unrelated companies?

I'd have thought external customer pressure would have more effect than internal pressure from management.

Is that ever the case with any company?

[GrumbleDook]

Synetrix is a grid and service provider for a number of RBCs and LAs. IIRC Capita have previously looked at getting into that market (pretty sure they looked at Redstone's books for the ISP side of things rather than managed services) and so this would make sense for them as a good earner.

Capita would have the MIS, a connection in with learning platform development, a hardware supplier (Computerland) and managed services. I would still these operating as separate arms to be honest ... but buying in services from the other sections as needed.

Also remember that any existing contracts for grids / LAs will run as they are contracted to ... so if you are using Synetrix at the moment there should be no real change.

[Face-Man]

I've just had this in from the LGFL

Those of you involved in, or aware of, the governance of LGfL for some years will recall in 2003/4 the acquisitions and subsequent merger of Equinox and Synetrix by the private investment group Apax Partners. Consequent to the maturing of the relevant investment fund, Apax has moved to realise its investment, and a purchase of Synetrix Holdings by Capita Group was implemented after close of business on Friday.

This 100% purchase of Synetrix could be expected to have material implications for the LGfL community, however both Capita and Synetrix are concerned to give assurances that there will be no detrimental effect on services or commercial arrangements as a consequence of this ‘behind the scenes’ change in ownership.

LGfL management has met directly with the Capita at CEO level to ensure a full understanding of LGfL’s business and constitution, and to represent concerns that existing mature relationships, arrangements and services are not disturbed, but rather that additional resources should be made available to continue to develop and enrich the current service offering.

Full assurances have been given that this is an ‘arms length’ acquisition. It is recognised that Synetrix has a successful business model, that LGfL is a highly valued and respected customer, and there is no intention of interfering to undermine the current successful position of either organisation. Additionally, arrangements are in place to ensure continuity in respect of all existing Synetrix senior management.

Capita Group has a long track record of inorganic growth (growing its business by the regular acquisition of other successful businesses) and this development is in line with that long term policy. In respect to service provision and development in the longer term, the group has substantial buying power and financial strength, and a significant depth of resource in respect to in-house IT professionals.

A recent frank face to face discussion with the Capita CEO revealed a number of points about the group:
• What’s in it for Capita? – strengthens the group’s education/IT offering, seen as particularly of value in a BSF context
• Will this lead to higher charges? – policy and practice has been to grow the quantum not the margin (‘Capita has lower profit margins than Synetrix’)
• Reputation is sacrosanct – referencing between customers and potential customers is seen as very powerful
• Values? – high quality services; never ‘rip off’ the customer; respect the relationship.
• Categorical personal assurance – ‘we will not exploit our position’.

LGfL’s contractual arrangements which originate with the contract let to Equinox in 2001, provide a power for LGfL to terminate its contract upon a change of control such as this. Given the mature state of the current service provision, the unequivocal decision last year by the Consortium to extend the current contract to 2012, the recent £5m investment by Synetrix in refreshing the technology in the core network, and the assurances given in respect to there being no detrimental effect arising from this change, LGfL has agreed to waive this power at the present time. As currently planned, a contract review will be put in hand at the end of next year.

[johnymac]

Sigh...
[ame=http://en.wikipedia.org/wiki/Nepotism]Nepotism - Wikipedia, the free encyclopedia[/ame]

[AyatollahPies]

Synetrix is a grid and service provider for a number of RBCs and LAs. IIRC Capita have previously looked at getting into that market (pretty sure they looked at Redstone's books for the ISP side of things rather than managed services) and so this would make sense for them as a good earner.

Capita would have the MIS, a connection in with learning platform development, a hardware supplier (Computerland) and managed services. I would still these operating as separate arms to be honest ... but buying in services from the other sections as needed.

Also remember that any existing contracts for grids / LAs will run as they are contracted to ... so if you are using Synetrix at the moment there should be no real change.

That's a crying shame. Was hoping for a vast improvement.

[Tonyoung]

Capita (aka SIMS) have purchased Synetrix for £75 Million...

It looks like a different part of Capita has made the acquisition - SIMS is Childrens Services, IT services are the team that purchased Carillion IT Services. I see this having little effect on SIMS and minimal change for LGFL or education customers.