Capita sells private sector contact centre arm to Inspirit Capital
Capita PLC shares jumped on Thursday, after it announced an agreement to sell its private sector contact centre business.
Shares in Capita, a London-based outsourcing and business services company, were up 15% at 277.00 pence in London on Thursday.
The buyer, Inspirit Capital, is a UK-based investment firm focused on acquiring small and medium-sized businesses from global corporations.
Capita is selling the business for a nominal £1 with £6.5 million of cash retained in the business upon completion, for working capital purposes. Additionally, potential contingent consideration of up to £61.5 million is expected to be paid in 2027 and 2028, with £50.0 million based on the business’ future financial performance and £11.5 million based on cash availability.
It expects to complete the deal before the release of its half-year results in August.
‘As disclosed previously, we have seen tangible results from the improvements we have made to the business,’ commented Capita Chief Executive Adolfo Hernandez. ‘However, we believe that the private sector contact centre business is best placed to succeed for the long-term under new ownership and we’re pleased to have found a partner to deliver incremental benefits for both parties with the onward progress of the business.’
Capita said the ‘important milestone’ of the disposal will enable ‘significant’ streamlining, providing it with tangible opportunity to accelerate its margin expansion and free cash flow generation, while leveraging its current capabilities to further increase growth.
It added that the deal will be value accretive and will unlock a material overhead reduction.
‘The sale of the private sector contact centre business further simplifies the group...It enables us to focus on Public Service and Pension Solutions and invest in our technology capabilities to improve our differentiation,’ Hernandez said. ‘This will enhance value creation in markets where technology-enabled transformation is accelerating and where Capita has deep expertise and strong demand.’
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