Vertex sells public sector unit for £55m

VERTEX, the outsourcing group spun out of United Utilities, has exited its UK public sector business with a £55.5m disposal to Serco Group.

Vertex, which is left with operations in India and North America was bought by a private equity group from Warrington-based UU in 2007 and last year sold its UK private sector business to Capita for £40.5m.

Vertex Public Sector has some 3,000 staff and provides business services to several local authorities and government departments.  Major customers include Westminster and Thurrock councils, and in central government the Child Maintenance and Enforcement Commission and Job Centre Plus.

The business, which has its HQ in Cheltenham and call centres nationwide, provides multi-channel call centres, shared transactional services and ICT services. Its particular strengths are in HR and payroll, revenues and benefits.

The pro forma financial result for the year to the end of March was approximately £110m of revenue and £8m of adjusted operating profit.

FTSE 100 member Serco said the deal boosts its market presence and improves its position to compete for large scale outsourcing opportunities.

Chief executive Christopher Hyman, said: “This acquisition enhances the range of services we offer to the UK public sector as they seek to reduce costs whilst continuously improving outcomes for citizens.

“We are pleased with the important customer relationships it brings and the opportunity to extend and expand these. The newly added skills and capabilities will also help Serco address future prospects in both the local authority and central government markets.”