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Home / Magazine Articles / Capita and Civica in £10m IBS deal

Capita and Civica in £10m IBS deal

Capita Software Services has retained IBS OpenSystems’ housing business following the £10m sale of IBS OpenRevenues to Civica, as ordered by the Competition Commission in June 2009.

Confirmation by the Competition Commission will allow Capita to strengthen its housing business and enable Civica to add to its revenues and benefits customers. The IBS OpenSystems Revenues and Benefits business will be renamed Civica OpenRevenues.

Ian Gates, director, Capita Software Services, said, “We are very pleased to welcome the IBS OpenSystems housing team and their customers to Capita. Housing is a core part of our growth strategy so this acquisition is a great opportunity. The additional industry knowledge and technical expertise this acquisition brings will be fundamental to achieving our business targets.”

Following the acquisition, Civica now supplies 94 per cent of the 407 local authorities in Great Britain, including more than 170 revenues and benefits customers.

Bill Loughrey, who was previously managing director of the IBS Group, joins Civica as managing director for OpenRevenues. Loughrey said, “This is a very positive step – OpenRevenues has a proven reputation for developing strong customer relationships, and has provided the product of choice for many customers that have come to market over the last eight years.”

Commenting on the acquisition, Joanna Sedley-Burke, business development director, Sovereign Business Integration, said, “Capita decided not to divest the whole of IBS, which was one of the options given by the Competition Commission, and this is a welcome demonstration of Capita’s commitment to the social housing sector. Capita and IBS have continued to bid for new business since the Competition Commission decided that Capita could not retain the revenue and benefits business, but a number of RSLs put their procurement plans on hold due to market uncertainty.”

Sedley-Burke added, “The consequence of this acquisition is further consolidation of the housing software market. While there will be fewer choices for housing organisations, the growth in each customer base should enable suppliers to invest more and improve the quality of their systems.”

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  • Vendor: Capita, Civica
  • Topic: Housing Management
  • Publication Date: 011 - September 2009
  • Type: News

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