Business process outsourcing firm Capita has agreed to sell its Pay360 division to Access PaySuite in a deal that values the division at £150.0m.
Capita said on Friday that the disposal of Pay360 was on a cash-free, debt-free basis, representing a 14.3x multiple on the business’ 2021 underlying earnings of £10.5m.
Taking into account cash-like and debt-like items, Capita expects to receive gross proceeds of roughly £156.0m upon completion.
The London-listed group added that the sale will help reduce debt and provide additional liquidity, which together it said will further strengthen Capita’s balance sheet, whilst also allowing the group to enhance its digital offerings for clients.
Chief executive Jon Lewis said: “We are pleased to have agreed the sale of Pay360 to Access. We announced our intention to sell Pay360 during our half-year results, as part of our strategy to simplify and strengthen Capita. The sale is a great opportunity for the new owners to help Pay360 realise its full potential, and our colleagues at Pay360 will also benefit from the focus that this change of ownership will bring.”
Reporting by Iain Gilbert at Sharecast.com
