Capita agrees to sell Secure Solutions and Services
Capita plc (Capita) today announces that it has agreed to sell its Secure Solutions and Services (SSS) business to NEC Software Solutions UK Limited for a consideration expected to be £62m, on a cash free debt free basis.
SSS is a provider of software solutions and managed services to the emergency services and justice sectors.
Earlier this year, Capita announced its intention to sell a number of non-core businesses which will be used to strengthen the balance sheet and address upcoming maturities. Capita continues to make good progress towards its target of £700m of proceeds from disposals in 2021 and the first half of 2022. Adding the expected proceeds from this disposal to the amount that Capita has already raised would bring the total proceeds to circa £600m.
The sale of SSS is subject to relevant approvals including customers and regulators.
The revenue and the reported profit before tax of the SSS business for the year to 31 December 2020 were £72m and £10m respectively, and the gross assets were £63m at 30 June 2021. These figures also include a Radio Managed Service contract that is included in the sale and which is due to terminate at the end of 2022. The normalised revenue and EBITDA of the ongoing SSS business is circa £58m and £8m per annum respectively.
The SSS senior management team and employees will be transferring with the business.
Jon Lewis, Capita’s Chief Executive Officer, said: “We are pleased to have agreed the sale of our Secure Solutions and Services business to NEC Software Solutions UK Limited following a competitive sale process.
“We announced our intention to sell SSS earlier this year as part of our ongoing strategy to simplify and strengthen Capita.
“The disposal is another step towards a more focused and sustainable business for the long term.
“At the same time, our SSS colleagues and clients will join an established industry organisation with plans to take the business onto the next stage of its development.”
For more information, please contact:
Director of Investor Relations
Tel: 07989 665484
Capita external communications
Tel: 0207 654 2399
Capita is a consulting, transformation and digital services business. Every day our 55,000 colleagues help millions of people, by delivering innovative solutions to transform and simplify the connections between government and citizens, businesses and customers. We partner with our 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 across three divisions – Capita Public Service, Capita Experience and Capita Portfolio – in the UK, Europe, India and South Africa. Capita is quoted on the London Stock Exchange (CPI.L).
Further information can be found at: http://www.capita.com
About Secure Solutions and Services
SSS is a leading provider of software solutions and managed services to the emergency services and justice sectors. It also has software and support services installed in 15 countries across five continents, protecting 135 million people.
SSS has been delivering advanced integrated systems to emergency services for more than 30 years. The main part of the business was acquired by Capita in 2010, from Sungard Data Systems Inc, and through further investment and acquisition has expanded its capabilities to provide a full end-to-end portfolio of solutions. It has an extensive portfolio of more than 150 customers, which includes many of the largest, most complex agencies across police, fire and ambulance services, as well as other public safety customers.
About NEC Software Solutions UK Limited
NEC Software Solutions UK has a proven history of developing innovative software for the public sector. Our ability to put vital information into the hands of those that need it is the reason why more than 50% of local authorities use us to collect revenues and administer benefits. It’s why 17 different police forces have chosen NEC CONNECT software to improve decision making at the frontline, why over 150 housing providers use NEC systems to manage their two million homes efficiently and why the NHS choose our technology to help them screen ten million babies for hearing loss. Based in the UK and working around the world, NEC Software Solutions UK’s 3,100 employees help improve the services that matter most. NEC Software Solutions UK is part of the NEC Corporation (“NEC”, TSE: 6701), a leader in the integration of IT and network technologies that benefit businesses and people worldwide. For more information, visit necsws.com.