Reliance Secure Task Management (RSTM), the Bristol-based firm providing specialist services to the NHS, police and Government departments, has been bought by outsourcing giant Capita for £20m.
RSTM employs 2,000 people, primarily at its head office in Patchway, Bristol, at a sister site in Heston and at its clients’ sites.
It provides forensic medical services, custody support and secure transport services to clients such as the UK Border Agency, the Ministry of Justice, NHS trusts and police forces.
Capita is paying the £20m purchase price on a cash-free, debt-free basis. This comprises £9.7m in purchase consideration and £5.85m payable to the seller in repayment of intra-group funding, with the balance being cash required to fund committed capital expenditure, pension obligations and working capital at completion.
RSTM made a pro forma operating loss for the 11 months to 31 March 2012 of £5.7m. Capita said its integration would realise significant synergy benefits and is expected to return to operating profit in 2013. The current level of revenues, on an annualised basis, is £75m.
Capita Group joint chief operating officer Andy Parker said: “The acquisition of RSTM will provide further scale and depth to the range of solutions we offer the health and emergency services, criminal justice system and wider public and private sector clients.
“It complements previous acquisitions, including SunGard Public Sector, Beat Systems and CedarHR. It also has significant synergies with our wide-ranging health and wellbeing business, which provides medical assessments in the private and public sector, including those for the new personal independence payments (PIP).
“We already work in some capacity with all police forces in England and Scotland, extensively with NHS trusts and, through our health and wellbeing business, with a number of large public and private sector organisations. These additional capabilities will allow us to provide new solutions, on a tailored basis, alongside our multi service offering.”
