Capita plc (Capita) announces today that it has reached an agreement to sell Supplier Assessment Services, including Constructionline, to funds affiliated with Warburg Pincus. On completion, which is expected to be early July 2018, Capita will receive £160m in cash.
The transaction is in line with Capita’s strategy of simplifying the Company, focussing on key growth markets and disposing of non-core businesses, as announced on 23 April 2018. Net cash proceeds from the disposal will be used to reduce indebtedness.
Capita has successfully managed, invested in and commercialised Supplier Assessment Services and rapidly grown the business, particularly since acquiring Constructionline in January 2015, having previously operated it as a concession.
Supplier Assessment Services underlying revenue and operating profit were £14m and £6m respectively in the year to 31 December 2017 and the business had gross assets of £26m. Supplier Assessment Services’ results in 2018 will be reported as a business exit in non-underlying items.
Goldman Sachs International acted as sole financial advisor on the transaction.
“This transaction marks a further step in executing the strategy announced in April aimed at simplifying and strengthening the business to deliver future success and contributing to realising £300m from non-core disposals in 2018.”
Capita today announces that it has been selected to deliver the Synergy Business Process Services contract worth £370 million.
Read more
Capita, a leading AI-led UK business process outsourcer, has today announced a multi-year agreement with Snowflake, the AI Data Cloud company.
Read more
Capita plc announces its pensions business has secured a contract renewal with an existing UK client effective from Q1 2026, valued at £137 million for a total term up to 10 years.
Read more
Capita has secured a new contract with Emovis, a leading provider of electronic toll payment solutions, to deliver print and fulfilment services related to the Dartford Crossing.
Read more
Share