LONDON, UNITED KINGDOM – Capita, a business process outsourcing company, has sold its software business, Capita One, to real estate solutions provider MRI Software for £200 million ($256 million).
The deal, valued at approximately ten times Capita One’s 2023 EBITDA of £21 million, is expected to be finalized by August 2024, pending shareholder approval and regulatory clearance.
Financial details and strategic intent
Upon completion, Capita anticipates receiving around £207 million in gross cash proceeds, along with a pre-completion cash dividend of £4.8 million from Capita One.
The acquisition is poised to bolster MRI Software’s position in the public sector software market, with plans to support Capita One’s growth and enhance its product offerings and customer base.
Capita One, known for providing software solutions to local authorities, education authorities, and housing associations, generated £55 million in revenue and £19 million in profit before tax in 2023.
The business aids public sector organizations in improving efficiency, maximizing revenue collection, and delivering cost-effective essential services.
Strategic alignment and future prospects
Adolfo Hernandez, Capita’s CEO, commented on the sale, stating, “Capita One is a high-quality business that has performed exceptionally well. Under its new owner, it is well positioned to benefit from investment in its strategic growth.”
He emphasized that the sale aligns with Capita’s strategy to become more focused and prioritize businesses with significant future opportunities. “We remain committed to the local public service market but want to see Capita One be set up for continued success with an owner that can deliver the investment it needs,” Hernandez added.
This sale is part of Capita’s broader plan to streamline operations and reduce debt, further solidifying its strategic focus and financial stability.
