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Updata provides a range of networking and connectivity services to mainly public sector clients and has a reputation for excellent service combined with an innovative approach to achieving best value for its clients. Updata is forecasting an operating profit of £5.6m on turnover of £41.8m in its financial year to 30 June 2014. For the 12 months to 31 December 2015, Capita expects Updata to generate operating profits of c. £12m on revenues of c. £74m.

Capita and Updata have had a strategic alliance in Scotland since October 2011, working together on contracts for local authorities in West Dunbartonshire, North Ayrshire, Fife and East Lothian. The two companies have also recently started working together on a framework contract to deliver the Scottish Wide Area Network (SWAN), a single public services network for the use of all public service organisations within Scotland.

The contract value for SWAN is up to £325m over nine years. More than 4,600 sites will be connected to the initial network including schools, hospitals, GP surgeries, pharmacists and local council offices. Key benefits include reduced costs, improved service and the ability to share data across organisations, fostering co-operative working.

Capita chief executive Andy Parker said: “Updata has a strong reputation across the public sector as a provider of IT networks that help schools, councils and health bodies deliver improved services. As part of Capita, Updata will strengthen our network capability and ensure we continue to meet the needs of our clients across the UK.”

Updata employs 160 people at six UK offices with a head office in Reigate. The acquisition will become part of Capita’s IT Services division.