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Capita beats Carillion to multi-billion pound Staffordshire deal

Capita has beaten Carillion to multi-billion partnership to manage education support services for Staffordshire County Council.

Capita was approved as preferred bidder to create an educational support services joint venture by the council cabinet last week, with plans to rol services out across the country.

The JV, in which Capita will hold a majority stake, will initially deliver a range of educational support services for schools and academies in the Staffordshire region.

The services are expected to generate revenues of around £85m per annum over 20 years.

Capita said the JV “will additionally focus on achieving significant growth through securing new local authority, school, academy and further and higher education clients across the UK”.

Over the first 10 years, it is targeting total revenue of at least £2bn.

As part of the agreement, Capita will acquire its stake in the joint venture with an initial investment of £24.9m in the first year and a further £6.6m over the following 3 years.

Some 3,800 staff are expected to transfer to the newly formed organisation.

Capita has also been selected as preferred bidder to deliver the London Borough of Barnet’s new support and customer service organisation (NSCSO) in a £320m deal over 10 years.

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