Capita splashes £80m on network biz Updata

Capita has coughed an eye-watering £80m in cash for fellow Public Services Network (PSN) provider Updata, as El Chan predicted months ago. The pair are already well known to each other: they have an alliance in Scotland and linked arms on contracts including the recent Scottish WAN project valued at £325m over nine years. As …

[Anonymous Coward]

SWAN?

Step 1: Partner up with a smaller unbundling company for connectivity, knowing that they are adding maybe 15 or 20 points per circuit as a markup on the bid....

Step 2: Offer a really suspiciously cheap bid, perhaps even below cost...maybe about 10%?

Step 3: Win the bid 'cos you are the cheapest!

Step 4: Buy the smaller company, thereby erasing 20 or so % of your cost-base at a stroke

Step 5: the 10% difference? That is your margin!!