28th Jan 2022 10:42
(Alliance News) - Capita PLC on Friday said it agreed to sell its IT services and solutions business Trustmarque to One Equity Partners for GBP111 million.
The London-based outsourcing and professional services company said the sale to the New York-based private equity firm is in line with its plan to dispose of non-core businesses.
These disposals are for the purpose of strengthening its balance sheet and directing its focus on its two core divisions Capita Public Service and Capita Experience, the outsourcer explained.
Capita expects to receive net proceeds of GBP115 million at completion, taking into account cash-like and debt-like items. Furthermore, an additional GBP3 million is receivable by the company, depending on "certain future events."
Trustmarque is a "top-tier" partner for global technology vendors and generated a pretax profit of GBP16 million on net revenue of GBP122 million for the year 2021. Its gross assets amounted to GBP240 million as at June 30.
The Trustmarque disposal follows the recently completed sales of the software businesses Secure Solutions and Services and AMT Sybex in October and December.
Capita said that the sale of Trustmarque was another "step towards materially reducing our debt" and that it met the goal of GBP700 million in total disposal proceeds ahead of its June 2022 target.
“We are pleased to have agreed the sale of Trustmarque to One Equity Partners following a competitive sale process. I am delighted that, once this sale is completed, we will have exceeded our disposals target - and achieved this much earlier than originally planned," Chief Executive Jon Lewis said.
"We are now focused on selling the remaining businesses in our portfolio division, with the goal of disposing of the majority by the end of 2022."
Separately, Capita said it appointed Nneka Abulokwe as a non-executive director, effective from next Tuesday. Abulokwe will be a member of the Remuneration, Audit & Risk, and Nomination committees, it said.
Shares in Capita were down 2.5% at 31.60 pence each on Friday morning in London.
By Abby Amoakuh; [email protected]
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