31st Jul 2015 15:38
LONDON (Alliance News) - Capita PLC confirmed on Friday the signing of a mortgage servicing contract with The Co-operative Bank.
The contract is due to begin on August 1, about six months later than was expected when the bank made Capita the preferred bidder on the contract worth GBP325 million over 10 years.
Back in November 2014, Capita had said the contract was anticipated to start in the first quarter of 2015.
Under the deal, Capita is buying Co-op Bank's mortgage administration business for GBP25 million on a cash-free, debt-free basis, with a deferred amount of GBP5 million to be paid one year after the acquisition.
That acquisition of Co-op Bank's Western Mortgage Services Ltd is due to complete on August 1.
"This deal and acquisition, alongside our recent announcement that we are acquiring Vertex Mortgage Services Ltd, subject to regulatory approval, will help Capita achieve its ambition of becoming the leading end-to-end mortgage processing partner for clients," Capita Chief Executive Andy Parker said in a statement.
"Capita will work with The Co-operative Bank to deliver an enhanced service for customers. This will be done by drawing upon Capita's existing and wide ranging commercial debt-servicing capabilities and its heritage of large scale customer service transformation across a range of industries," the CEO added.
Capita shares closed up 2.0% at 1,304.00 pence Friday.
By Samuel Agini; [email protected]; @samuelagini
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