Business process outsourcing firm Capita has agreed to offload its Pay360 unit to Access PaySuite for £150m as part of its strategy to “build a more focused, sustainable business” in the future.
The sale will help Capita reduce its debt and provide additional liquidity, which together it said will further strengthen Capita's balance sheet, whilst also allowing the group to enhance its digital offerings for clients.
The Pay360 senior management team and employees will remain with the business as they transfer to new ownership.
Jon Lewis, Capita’s CEO, said: The sale is a great opportunity for the new owners to help Pay360 realise its full potential, and our colleagues at Pay360 will also benefit from the focus that this change of ownership will bring. Capita will utilise the cash proceeds of the sale to benefit our digital offerings for clients and further reduce net debt.”
The London-based firm said the sale was on a cash-free, debt-free basis, representing a 14.3x multiple on the business' 2021 EBITDA of £10.5m.
