Public sector recruiter The Capita Group has agreed to acquire the international financial services business of AIB for a cash consideration of £29m, on a cash-free, debt free basis.

Owned by the AIB Group, AIBIFS, which is headquartered in Dublin and has 160 employees in Ireland and overseas, provides outsourced services, including corporate administration, treasury management, securitisation and middle and back office services to financial institutions and corporate clients.

Once the deal is completed, the business will integrate into Capita’s investor and banking services division, which employs around 2,000 people across the UK, Ireland, Europe, the Channel Islands and India.

Capita Group chief executive Paul Pindar said: “The acquisition of AIBIFS is an excellent strategic fit for Capita.

“It fully complements our existing business in terms of services, client base and professional staff, while also providing Capita with the opportunity to further develop its client proposition within the financial services industry.”

The deal is subject to approval by the appropriate regulatory authorities in Ireland, Luxembourg and The Netherlands.