Serco Acquires The Listening Company

Serco acquires The Listening Company, a leading UK provider of outsourced
contact centre services

15 March 2011

Serco Group plc (Serco) today announces that it has acquired The Listening
Company, a UK based provider of outsourced customer contact centre services to
both private and public sector organisations, for an initial cash consideration
of £42.1m which includes the repayment of £16.4m of debt.  In addition,
contingent payments of up to £13.8m are payable, conditional on the financial
performance in the two year period from 1 March 2011 to the end of February
2013.

The Listening Company, an award-winning outsourcer, specialises in bespoke
solutions for managing customer interaction ranging from customer acquisition
to retention, renewal and growth and including advice and service. It operates
across multiple communication channels including email, telephone and internet.

This acquisition adds significant contact centre expertise to Serco's current
capabilities offered in the growing markets in local government and the private
sector.  The Listening Company's scale and expertise will strengthen our
capability to deliver high volume call handling and frontline customer
services.  This capability will allow us to promote easier access to front line
services as well as encouraging the migration to the use of lower cost
channels, which will be a key component of our future proposition. We expect
this to enhance our capability to deliver local authority transformation
programmes and also to improve our market position for private sector work.

The Listening Company's revenue for the year to 31 October 2010 is expected to
be £82m with underlying operating profit of £4.4m before one-off investment.
Following full integration into our Local Government & Commercial division, we
expect The Listening Company's operating margin to be at least in line with the
Group's.

Christopher Hyman, Chief Executive of Serco Group plc, said: "This acquisition
takes us to a new level of contact centre operation, expanding the services we
offer to both the private and public sector as they seek to improve the
effectiveness and efficiency of their contact centre operations.  It will not
only enhance our offering in bids for local authority transformation
programmes, an important part of their solution to the challenges in the UK,
but also strengthen our private sector capability."

Ends

For further information please contact Serco:

Jill Sherratt, Interim Head of Investor Relations T [phone]

Dominic Cheetham, Director of Corporate Communications T [phone]

Marcus De Ville, Head of Media Relations T [phone]

About Serco

Serco is a FTSE 100 international service company, which combines commercial
know-how with a deep public service ethos.

Around the world, we improve essential services by managing people, processes,
technology and assets more effectively. We advise policy makers, design
innovative solutions, integrate systems and - most of all - deliver to the
public.

Serco supports governments, agencies and companies who seek a trusted partner
with a solid track record of providing assured service excellence. Our people
offer operational, management and consulting expertise in the aviation, BPO,
defence, education, environmental services, facilities management, health, home
affairs, information and communications technology, knowledge services, local
government, science and nuclear, transport, welfare to work and the commercial
sectors.

More information can be found at www.serco.com

About The Listening Company

The Listening Company employees over 4,300 people in eight UK locations,
managing over 60 million conversations a year across all channels on behalf of
clients in the media, retail, telecommunications, financial services,
automotive and public sectors among others. Service centres are located across
the UK in Manchester, Newcastle, Glasgow, Brora, Westminster, Tonbridge,
Portsmouth and Richmond.

The Listening Company has an excellent reputation within the Contact Centre
industry. Its success is reflected in industry awards including European Call
Centre Association - Best Outsource Partner 2009 and National Outsourcing
Association - Contact Centre Provider of Year 2010.  

For organisations in the private sector, The Listening Company's experience and
expertise incorporates a wide spectrum of services which include customer
service, technical support, claims administration, lead generation, appointment
setting and telesales. In public services, The Listening Company provides
information, advice and guidance to millions of people every year on matters
relating to their career, health and well-being.