Outsourcing firm Capita has sold its software business, Capita One, to real estate solutions provider MRI Software for £200m to strengthen its financial position and reduce debt.
MRI Software plans to support Capita One's growth and expand its public sector software offerings.
Capita One, which serves local authorities, education, and housing associations, generated £55m in revenue and £19m in profit before tax in 2023.
Adolfo Hernandez (pictured), Capita's CEO, said: "Capita’s strategy is to become a more focused company, prioritising businesses where we can deliver material opportunities in the future, with greater simplification and cost reduction.”
“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.”
Capita will receive £207m in cash proceeds and a £4.8m dividend. The deal, valued at 10 times Capita One's 2023 EBITDA of £21m, is expected to close by late August 2024, pending approval.
Barclays Bank PLC advised Capita on the transaction.
