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Just when you thought it was safe to come out and look at new social housing & council software solutions, one of the biggest suppliers has found itself unexpectedly under the gun. You will have perhaps read here in this blog back in early July , about the sale of London-based outsourcing and professional services company Capita Software, to US Solon, Ohio headquartered MRI (now owners of Orchard & Castleton).
The CMA (Competition & Markets Authority) who have the job of discovering any companies enabling monopolies and restricting choice, this week 05/11/2024 issued an Initial Enforcement Order against MRI. For legal eagles out there, it’s under section 72 of the Enterprise Act 2002. The LSE update is here on the latest for this £207m software takeover. Back following the July announcement there was an early 18% surge in Capita shares to just over 18p each.
The most recent parallel to this affecting UK Socialhousing and Local Authority solutions, was a few years back again involving Capita’s merger with IBS. That took many months and involved having to farm off benefits applications.
In this case, the least optimum outcome for MRI could be a decision to have to hive off the OneHousing applications and MRI retain the remaining non-housing sector solutions. The latter includes education and other areas non-key to Real Estate, MRI’s specialism. However it would keep more traditional HMS options available for procurement in the medium to large providers zone.
Of course there are plenty of housing system options beyond the traditional HMS, particularly suitable in the crowded micro to medium sized provider zone. These include written specifically for Cloud/Responsive Browser offerings, would-be dinosaur slayers, D365, client-server options hiding behind thin clients and Salesforce.Org options.
Notably MRI seem to currently have a gap in that lower sector segment. Methinks we might yet possibly see another acquisition being needed before long.
Checkout the full CMS chapter & verse here with lots of legalese. As at time of writing, no word of this on MRI's official UK news page.
Related Post: In procurements, what are the right questions to ask (& when to remain compliant)?
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The Black Keys – Under The Gun.
(c) Tony Smith, Acutance Consulting www.acutanceconsulting.co.uk 07854-655009
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