Buying again, London consultancy company Capita Group Plc yesterday announced conditional agreement to buy software and support group SIMS Holdings Ltd for a maximum of #10m, raising some of the price with a placing of new shares to raise #4.2m after expenses. Capita plans to pay #6m on completion and a maximum of a further #4m contingent on SIMS profits for the period July 1 1994 to December 31 1996. It will pay half of the #6m in cash and the balance with money raised from the placing. SIMS made an operating profit of #1.54m for the year ended March 31 and Capita reckons the acquisition will establish it as the UK leader in providing specialist computing services to the education sector. It is expected to enhance earnings per share in the year ending December 31 1994, it added. To encourage shareholders to back its recommendation of the offer, Capita also says it has started the year well, is trading ahead of last year and views the rest of 1994 confidently. It expects to pay a 1.05p per share interim dividend.
Content from our partners
