Capita has announced plans to raise £290 million for new acquisitions and will place 40 million new shares on the stock exchange.

The outsourcers have already spent £90 million this year purchasing smaller rivals, hoping that the acquisitions will offer new opportunities abroad, as budget cuts in the UK continue to take their toll.

Capita said: “The board had expected acquisition activity to reduce during 2012. However, in assessing the pipeline of potential opportunities since the preliminary results, the board has concluded that the acquisition environment continues to offer a rare opportunity to broaden the business.”

Capita currently administer council tax for around a third of Britain’s homes, and achieved a 14% return on investments over the past four years.