Capita acquires PwC businesses to extend presence in HR services

Capita is expanding its Human Resource Services business by acquiring three
HR businesses from PricewaterhouseCoopers (PwC), and establishing a
co-operation agreement with the firm to deliver an enhanced range of HR
services to the market.

The three businesses include: Executive Search & Selection (ESS),
recruitment for senior and upper middle management positions; Interim
Management, short term senior management support; and Human Resources
Outsourcing, strategic HR consultancy and flexible benefits administration.
The businesses were formerly part of PwC''s Global HR Solutions division and
employ 220 staff across offices in London, Birmingham, Leeds, Manchester and
Edinburgh. All staff are transferring to Capita with effect from 11th May
2002. Clients represent the full range of industry sectors and the public
sector.

Under the terms of the acquisition, ESS and Interim Management will trade
under the new name of Veredus Executive Resourcing, while HR Outsourcing
will trade under the Capita name as Capita Integrated HR Services. Capita
has acquired these businesses for a consideration of 14 million.

This extended HR service offering positions Capita to meet the growing
demand for the delivery of comprehensive, integrated HR Solutions from
organisations across both the private and public sectors. Commenting, Maggi
Bell, Executive Director, Capita said: We are seeing increasing demand
from clients for a variety of specialist services, plus the ability to
access a range of these services in an integrated way. These acquisitions
position us ahead of the market in being able to meet these demands across
both the public and private sectors.