(Sharecast News) – Capita confirmed its decision to offload its travel and events divisions, Agiito and Evolvi, to Clarity Travel on Thursday in a deal valued at £36.5m.
The FTSE 250 company said the sale would be executed on a cash-free, debt-free basis, and after accounting for working capital and debt obligations which Clarity would assume, Capita said it expected net cash proceeds of £16m.
It said the funds would be staggered, with half being paid on the deal’s completion and the remaining £8m scheduled for payment 12 months post-completion.
A significant aspect of the transaction, Capita said, would be the retention of the existing management and workforce.
As Agiito and Evolvi transitioned to Clarity, their senior management teams, as well as other employees, would remain in place.
Clarity serves as the business travel and events segment of Portman Travel Group, Capita explained.
For the year ended 31 December, the cumulative revenue and pre-tax profit for Agiito and Evolvi stood at £31m and £4m, respectively.
As at 30 June, the gross assets of the combined entities were reported to be £76m.
However, the sale’s finalisation remained contingent on approval under the National Security and Investment Act.
“We are pleased to have agreed the sale of our travel and events businesses to Clarity, following a competitive sale process,” said chief executive officer Jon Lewis.
“The transaction offers significant growth opportunities for the businesses, their clients and colleagues.
“It also marks another significant step towards reducing Capita’s debt, as we continue to simplify and strengthen the organisation, and become a more successful business for the long term.”
Reporting by Josh White for Sharecast.com.