Outsourcing group Capita has bought a hotel, business travel and conference booking agency in an attempt to expand its existing operations in the business travel market.

The firm has acquired Expotel Group for a consideration of £16m on a cash-free, debt-free basis. Expotel generated £16.3m in turnover in the year to October 31st 2011 and made a pro forma operating profit of £3.2m.

"The addition of Expotel will bring both significant additional expertise and greater scale to our UK focused corporate travel business," said Capita's Chief Executive Paul Pindar.

"Expotel also brings considerable experience in venue and event management, which, alongside our existing business, creates a proposition of genuine scale and depth in this fast growing area of the market," he said.

The combined company will employ nearly 900 staff in 10 locations.

"With the public sector needing to drive down travel and subsistence costs, it will be in a strong position to help local and central government achieve these aims."

By 08:29 on Friday, Capita's shares were down 0.21% at 720p.

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