2nd Feb 2021 19:11
Capita PLC - London-headquartered outsourcer - Completes sales of Education Software Solutions business to Tiger UK Bidco Ltd, established by funds advised by Montagu Private Equity, for GBP298.5 million.
An additional sum of GBP45 million will be payable by Montagu to Capita following receipt of certain regulatory approvals in respect of Montagu's agreed investment in ParentPay (Holdings) Ltd.
Sale supports Capita's ongoing strategy to "simplify, strengthen and succeed," it says.
The net proceeds from the disposal will be used to strengthen Capita's balance sheet. About GBP50 million of the proceeds will be used to replace the remaining value of an asset-backed financing agreement, relating to intellectual property developed by ESS, which was entered into in 2012 with the Capita pension scheme through the Capita Scotland (Pension) Ltd Partnership.
Tiger UK Bidco is a new company established by funds advised by Montagu Private Equity LLP, the private equity firm with headquarters in London.
The London-based consulting, transformation and digital services business's ESS provides management information system software to the education sector. The gross assets of ESS and the reported pretax profit for the year ended December 31, 2019 were GBP96.2 million and GBP52.7 million respectively.
Capita says part of the agreement will see Montagu assume liabilities such as a working capital and debt worth GBP57 million.
Current stock price: 36.75 pence
Year-to-date change: down 6.3%
By Paul McGowan; [email protected]
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