Capita plc (‘Capita’) today confirms that it has agreed to sell software businesses CIBS, CHKS, Retain, WFM and Synaptic to AdvancedAdvT Limited (‘AdvancedAdvT’) for an enterprise value of £33m on a cash-free, debt-free basis. Including cash and debt-like items and typical working capital adjustments, Capita expects to receive cash proceeds of c£44m on completion, including c£9m of cash within the sold businesses at the time of the transaction.
These five businesses collectively represent Capita’s non-core software assets in its Portfolio disposals division. They have limited overlap with the rest of core Capita.
The company previously announced its intention to sell a number of non-core businesses to strengthen the balance sheet and focus on its two core divisions, Capita Public Service and Capita Experience.
AdvancedAdvT (LSE: AdvT) buys and invests in software and services businesses with the focus on organic growth and synergistic M&A.
The combined reported revenue and profit before tax of the non-core software businesses for the year to 31 December 2022 were £35m and £3m respectively. Gross assets were £81m at 31 December 2022.
The sale to AdvancedAdvT is subject to National Security and Investment Act approval.
The senior management team and employees will remain with their businesses as they transfer to the ownership of AdvancedAdvT.
The agreement to sell these non-core software businesses follows the agreement to sell our critical messaging services business PageOne and completion of the divestment of our Resourcing and Security Watchdog businesses in May.
Jon Lewis, Capita’s Chief Executive Officer, said: “We are pleased to have agreed the sale of these non-core software businesses to AdvancedAdvT following a competitive sale process.
“The sale marks another step for our successful disposals programme which has enabled us to significantly strengthen the balance sheet and materially reduce our debt.
“We continue to target for the majority of the remaining businesses within our non-core Portfolio division to be sold during the first half of 2023, depending on general market conditions.”
Capita is being advised on this transaction by Deloitte.
For more information, please contact:
Investor enquiries
Helen Parris Stephanie Little
Director of Investor Relations Investor Relations Manager
Email: IRteam@capita.co.uk Email: IRteam@capita.co.uk
Media enquiries
Capita external communications
Tel: 0207 654 2399
Email: media@capita.co.uk
About Capita plc
Capita is a leading provider of business process services, driven by data, technology and people. We are a purpose-led, responsible organisation¬. Every day our 50,000 colleagues help millions of people, by delivering innovative, digitally enabled solutions to transform and simplify the connections between government and citizens, businesses and customers. We partner with our clients and provide the insight and technologies that give time back, allowing them to focus on what they do best and making people’s lives easier and simpler. We operate across three divisions – Capita Public Service, Capita Experience and Capita Portfolio – in the UK, Europe, India and South Africa. Capita is quoted on the London Stock Exchange (CPI.L). Further information can be found at: https://www.capita.com
About the Software businesses
CIBS is a leading financial management software and services provider primarily to healthcare providers and local government. CHKS is a leading software-enabled provider of accreditation, benchmarking and clinical coding services to the healthcare industry. Retain and WFM are workforce management software providers. Synaptic is a research-led SaaS technology solution platform, integrated investment research, risk rating and compliance offering to IFAs, distributors and fund groups. They are collectively the non-core Capita software assets, with limited overlap with the remaining core Capita.
