Capita acquires iQor UK

Capita plc - Capita acquires iQor UK

PR Newswire

London, February 28

28 February 2013

Capita plc (`Capita') announces today that it has acquired iQor Holdings UK Ltdand subsidiaries (`iQor UK'), from its US parent company, for an enterprisevalue of £42m, comprising a cash consideration of £40.5m on a cash free, debtfree basis and the assumption by Capita of a pension deficit of £1.5m (net oftax relief).

iQor UK provides outsourced debt collection services to both the public andprivate sectors in the UK, helping companies and organisations to manage highrisk customers and ensure revenue collection. The company made an operatingprofit on a pro forma basis for the year to 31 December 2012 of £6.5m onturnover of £21.8m.

Commenting on the deal, Paul Pindar, chief executive of Capita plc said: "Theacquisition of iQor UK will enhance both the collections part of our customermanagement business and our wider debt management capability, providing us within house `late stage' debt recovery expertise alongside our existing early andfinal stage businesses. iQor UK provides services to around 20 public andprivate sector organisations including well known high street brands, as wellas Capita itself, to which it provides support on the BBC TV licensingcontract."

Norm Merritt, president and CEO of iQor Holdings Inc. said: "Our plan to sellour UK debt collections subsidiary demonstrates our commitment to concentrateour strategic focus and investments in our growing North American business andexpanding our analytics capabilities and global footprint in high-demandnearshore and offshore locations. While we are very proud of theaccomplishments and contributions of our team in the UK, we feel it is in thebest interests of our employees and UK clients to be part of a strong, UK-basedparent like Capita."

iQor UK employs 450 people in Preston.

Paul Pindar, Chief Executive

Shona Nichols, Corporate Communications Director

Tel: 0207 654 2152 or 020 7654 2399 (out of hours)

Notes to editors

Capita plc is the UK's leading provider of BPO and integrated professionalsupport service solutions. With 46,500 people at more than 350 sites, including68 specialist business centres across Europe and India, the Group uses itsexpertise, infrastructure and scale benefits to transform its clients'services, driving down costs and adding value. Capita is quoted on the LondonStock Exchange (CPI.L), and is a constituent of the FTSE 100 with 2011 turnoverof £2.9 billion and profit before tax of £385 million. Further information onCapita plc can be found at: http://www.capita.co.uk