Completion of the sale of Education Software Solutions (“ESS”) business
Capita is pleased to announce that it has completed the sale of its ESS business to Tiger UK Bidco Limited, a newly formed company established by funds advised by Montagu Private Equity (“Montagu”).
As previously announced on 14 December 2020 and 14 January 2021, the disposal of the ESS business, a standalone business within the Capita group, supports Capita’s ongoing strategy to “simplify, strengthen and succeed”.
The cash proceeds paid by Montagu in respect of the disposal were £298.5m. As previously announced, an additional sum of £45m will be payable by Montagu to Capita following receipt of certain regulatory approvals in respect of Montagu’s agreed investment in ParentPay (Holdings) Ltd.
In accordance with the shareholder circular dated 16 December 2020, the net proceeds from the disposal will be used to strengthen Capita’s balance sheet and build a more focused, sustainable business for the long term. Approximately £50m of those proceeds will be used to replace the remaining value of an asset-backed financing agreement, relating to intellectual property developed by ESS, which was entered into in 2012 with the Capita pension scheme through the Capita Scotland (Pension) Limited Partnership.
For more information please contact:
Capita investor enquiries
Director of Investor Relations
Tel: 07989 665484
Capita media enquiries
Capita external communications
Tel: 0207 654 2399
Capita is a consulting, transformation and digital services business. Every day our 61,000 colleagues help millions of people, by delivering innovative solutions to transform and simplify the connections between businesses and customers, governments and citizens. We partner with clients and provide the insight and cutting edge technologies that give time back, allowing them to focus on what they do best and making people’s lives easier and simpler. We operate in the UK, Europe, India and South Africa – and across six divisions: Customer Management; Government Services; People Solutions; Software; Specialist Services; and Technology Solutions. Capita is quoted on the London Stock Exchange (CPI.L).
Further information can be found at: http://www.capita.com.
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