1 October
2021
This announcement contains inside information
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:
Investor enquiries
Stuart Morgan
Director of Investor Relations
Tel: 07989 665484
Email: IRteam@capita.co.uk
Media enquiries
Capita external communications
Tel: 0207 654 2399
Email: media@capita.co.uk
About Capita
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.
Ends