OFT Refers Capita, IBS Merger To Competition Commission

Edited Press Release

LONDON (Dow Jones)--The Office of Fair Trade(OFT), said Wednesday that it has referred the completed acquisition of IBS OPENSystems (IBS) by Capita Group to the Competition Commission (CC) for further inquiry.

The OFT has significant competition concerns in relation to the supply of revenue and benefits software services to U.K. local authorities.

Bidding data, supported by strong customer concerns, indicates that the merger combines two of only three successful competitors supplying such software, and that with the removal of IBS as an important rival, Capita would be likely to find it profitable to offer its own and/or ...