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DWF advises Capita on Trustmarque acquisition

DWF advised Capita on its acquisition of Trustmarque Solutions Ltd, part of the Liberata group, from parent company Ardbid Ltd for a £57m cash consideration.

Trustmarque is an award-winning technology business which delivers integrated services that support UK private and public sector organisations through every step of the IT investment process, from solution development through technology provision to deployment and on-going support.

Trustmarque’s core business is software resale, licensing and technology services. Its ‘Enterprise-as-a-service’ model helps customers transform, integrate and simplify their technology and management of services. Key specialities include software asset management and strategic cloud consultancy. Other central service offers include business intelligence, workforce productivity and resourcing. The Company serves over 1,450 private and public sector clients and employs 620 employees based in five offices in York, Coventry, Sheffield, Edinburgh and London.

Trustmarque has a notable public sector presence in the NHS and in the private sector in accounting and legal services. It is Microsoft’s most accredited UK partner, holding 14 Gold Partner competencies, and is the largest Microsoft public sector licensing specialist in the UK; providing over £100m of licenses each year. It is also a Microsoft Cloud Solutions Provider and is Microsoft’s biggest partner in the UK for public sector cloud. The business is targeting strong growth in strategic cloud consultancy and has identified a £5bn addressable UK market for these cloud services, including MS O365 and MS Azure.

Andy Parker, Capita's Chief Executive, said “This acquisition provides Capita with a set of capabilities and expertise that complement our existing businesses – and the mix of core reseller activity and higher value services is a strong proposition that will sit well with our wider technology offering. Trustmarque’s ‘Enterprise-as-a-Service’ model will provide a number of opportunities to build new services and deepen our existing relationships with key partners, in particular with Microsoft.”

“It will particularly enhance our growing Capita Technology Solutions business, expanding its ability to offer innovative services to current and potential clients. Specific specialities, such as software asset management and strategic cloud consultancy, have strong synergies with Capita’s existing propositions.”

Scott Haddow, Trustmarque's Chief Executive, said “We are thrilled to join Capita and take the next steps forward in Trustmarque’s development. We are now well positioned for strong organic growth, supported by Capita’s impressive expertise, experience and scale. There are a number of opportunities for integration – including our success selling services through G-Cloud – that will help us to lower costs and cross sell services to customers.”

“Capita’s long history with Trustmarque means that the two businesses understand each other well, and we look forward to working closely with new colleagues to deliver the best possible services and solutions.”

The core DWF team consisted of Tom Maxwell, Paul Pignatelli and Gemma Gallagher (Corporate), Colin Miller (Commercial) and James Cashman and John Toon (Tax).

Tom said “We are pleased to support Capita on another important acquisition for its IT enterprise services/technology solutions businesses having advised Capita in the last 12 months on the acquisitions of Pervasive, Electra-Net and Paypoint.net/Metacharge.”

Gareth Hughes and Costa Smith at Pinsent Masons, Peter Jeffreys at Moore Blatch and Jonathan Jones at Addleshaw Goddard advised the vendors.

Tom Maxwell

Director

I am a Director in the corporate team advising clients on mergers and acquisitions, private equity investments and general corporate matters.

Paul Pignatelli

Partner - Executive Partner Glasgow

I am the Executive Partner for Glasgow and a partner specialising primarily in corporate finance but with a strong track record also on sporting matters.

Sectors

Colin Miller

Partner

I am an intellectual property specialist with the firm’s commercial team with additional expertise in procurement law and competition law.

James Cashman

Associate

John Toon

Partner - Head of Commercial Tax

I am a Partner and Head of Commercial Tax.