Capita Group (CPI.L) is to acquire the pensions administration and software business of NorthgateArinso in a deal worth £27.5 million.

The group said it would add new expertise and capacity to its pensions management and administration business, Capita Hartshead.

The NorthgateArinso business provides both third party pensions administration and pensions software private sector client base, including Aviva, Boots, Michelin and Rentokil.

According to Capita, the business made a pro forma operating profit in the financial year to 30 April 2011 of £4.7 million.

Paul Pindar, chief executive of the Capita Group, said, 'This acquisition will both complement our existing administration business and will allow clients coming to us from NorthgateArinso access to a wider range of specialist pension services."

The group is set to undergo a TUPE (Transfer of Undertakings [Protection of Employment]) with staff before the deal completes.

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