Trustmarque sold to Capita for £57 million

The Microsoft seller and managed services business Trustmarque has changed hands for the fourth time in three years, after it was acquired by Capita for £57 million in cash.

The company, which is part of the Liberata Group, was put up for sale in February by its parent company Ardbid Ltd with the investment bank William Blair appointed to find a buyer.

Trustmarque sells to 1,450 clients in both the public and private sector, including Volkswagen Financial Services, the Camping and Caravanning Club and a range of NHS bodies. The company also has a managed services portfolio that includes application support and platforms, IT outsourcing, environment and system management report in addition to business critical support.

Currently, Trustmarque has 620 staff working in the UK with offices in York, London, Coventry, Sheffield and Edinburgh. During the course of 2015, it was able to earn £191.9 million in revenue which was an eight per cent increase from the previous year.

In its London Stock Exchange filing, Capita confirmed that it expects Trustmarque's return on investment after tax to reach 15 per cent in 2018 as a result of cross selling, cost savings and market growth. In regard to how the company will fit within Capita's offerings, its CEO, Andy Parker said: “The mix of core reseller activity and higher value services is a strong proposition that will sit well with our wider technology offering.”

In 2013, Trustmarque was sold by the private equity firm LDC to Dunedin for £43 million. However the business had a downturn after an auditor discovered a discrepancy in its accounts involving the revenue recognition of services contracts.

Liberata eventually bought Trustmarque eleven months after it had saved Trinity Expert Systems (TES). TES was then merged with the company at the beginning of last year. However neither company fit well alongside Liberata and the sale of Trustmarque to Capita will likely be best for both companies.

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