The Competition Commission has published its report on the completed acquisition of IBS OPEN Systems plc by the Capita Group plc. The report sets out that, as a result of the harmful effect that the merger had on the market, Capita Group plc are required to divest part of the IBS OPEN Systems plc software business.
The merger brought together Capita Group plc and IBS OPEN Systems plc, both of which supplied revenues and benefits and social housing software systems to local authorities and social housing organisations. The Competition Commission did not have competition concerns about the market for social housing software, where there are considerably more suppliers in competition with the merged company. On the other hand, Capita Group plc is required to sell the revenue and benefits business of IBS OPEN Systems plc as soon as possible, and if no suitable sale is achieved, the Competition Commission has stated that it will require Capita Group plc to sell the entire IBS OPEN Systems plc business.
A copy of the Report is available by clicking here.