Capita secures £220m contract extension

28th Feb 2024 08:32

(Sharecast News) - Outsourcing company Capita has inked a deal with as much as £220.0m with a "major European telecoms provider".

Capita said on Wednesday that it has extended and expanded its customer experience contract with a strategic partner for a major European telecoms provider, noting it will provide dedicated support for all consumer and business customers across a wider range of products and services.

The AIM-listed group stated the deal was worth up to £220.0m from now to 2030, with £55.0m of additional scope. It also comes with a £165.0m renewal in the period from 2027 to 2030, with an option to extend for a further three years.

Capita added that the new deal was in addition to its existing one, which was worth roughly £200.0m from now to 2027.

Chief executive Adolfo Hernandez said: "We are exceptionally proud to be building on our 25-year partnership with our client with this expanded remit, reflecting the huge trust they place in Capita to deliver outstanding outcomes. This win is testament to our exceptional track record of delivery for our client.

"We are focused on embedding technology to enable greater efficiency and provide a better, personalised customer experience. We will continue to look for opportunities to enhance the customer experience and the productivity of our client."

As of 0950 GMT, Capita shares were up 4.13% at 20.85p.

Reporting by Iain Gilbert at Sharecast.com