Tribal Group Plc, a provider of consultancy, support and delivery services to the public sector, has acquired Newchurch, a business consultancy focused on healthcare, for up to £10.5 million.

The acquisition marks the next stage in Tribal’s growing healthcare practice, an area the company says should “benefit from increases in government spending of approximately five per cent per annum in the period to 2011”.

Newchurch brings clients, such has the Department of Health, Strategic Health Authorities and Primary Care Trusts to the fold, as well as a number of private providers of healthcare services to the business.

As part of the deal, Newchurch’s management team will remain with the business. Last year, the provider of strategic advice to healthcare organisations reported operating profit of £1.11 million on turnover of £3.4 million.

Peter Martin, Tribal CEO, said: “Newchurch’s services and client base complement our healthcare business and we will now be able to offer our health sector clients integrated solutions to complex organisational challenges.”