Sale of Capita Asset Services to Link Group

About this update from Capita Plc

[{"type":"text","content":"\n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\n\nFOR IMMEDIATE RELEASE\n\n23 June 2017\n\nCapita plc\n\nSale of Capita Asset Services to Link Group for £888 million\n\nCapita plc (“Capita” or the “Group”) today announces the sale of the Capita Asset Services businesses (“CAS”) to Link Administration Holdings (“Link Group”) for a cash free, debt free consideration of £888 million.\n\nThe transaction is subject to certain regulatory and other approvals and completion is expected in Q4 2017.\n\nUpon completion of the sale, after the deduction of transaction expenses (including certain separation related costs, including a £17 million one-off pension contribution) of approximately £72 million, the net cash proceeds are intended to be used to reduce indebtedness, including the Company’s receivables financing facility. Including the proceeds and excluding the EBITDA generated by CAS, the pro forma net debt / EBITDA ratio would have been 1.8 times at 31 December 2016.\n\nCommenting on the transaction, Andy Parker, Chief Executive of Capita said:\n\n“We are delighted to announce the sale of the Capita Asset Services businesses to Link Group. In the Autumn of last year we set out a strategy to simplify and streamline Capita by repositioning the Group and refocusing on delivering technology-enabled business and customer management solutions that make business processes smarter and deliver better customer service. This disposal is an important step in realising this strategy. We have achieved an attractive price and the reduction in leverage is significant and ensures that Capita can fully focus on the pursuit of what it does best: continuing to deliver outstanding services to our clients and their customers.\n\n“We have made good progress across all the strategic initiatives we set out at the end of 2016. We have re-structured to become a market-facing organisation with a renewed focus on sales, completed our disposals of non-core businesses which will result in a significant reduction in leverage and made good progress in improving productivity and reducing costs across the Group. The disposal of CAS, alongside our other initiatives, makes Capita a leaner business with ...

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