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 +44 (0) 208 334 4122 Dominic Cheetham, Director of Corporate Communications T +44 (0) 208 334 4334 Marcus De Ville, Head of Media Relations T +44 (0) 208 334 4388 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.

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