17th May 2021 14:36
Capita PLC - London-headquartered outsourcer - Is part of a merger investigation by the UK's Competition & Markets Authority looking into whether its deal with ParentPay Ltd and Montagu Private Equity LLP lessens competition.
Capita completed the sale of Education Software Solutions business in February to Tiger UK Bidco Ltd, established by funds advised by Montagu Private Equity Ltd, for GBP298.5 million. As part of the deal, an additional sum of GBP45 million was payable by Montagu to Capita following receipt of certain regulatory approvals in respect of Montagu's agreed investment in ParentPay (Holdings) Ltd.
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 CMA is considering whether this transaction has resulted in the "creation of a relevant merger situation" and, if so, whether the creation of that situation may be expected to result in a "substantial lessening of competition". The CMA announces the launch of its merger inquiry on May 14 and has a deadline of July 12 for its phase one decision.
Current stock price: 42.36 pence
Year-to-date change: up 8.0%
By Will Paige; [email protected]
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