October 7, 2022

This is Capita’s latest attempt to scale down operations and pay off a large amount of the company’s debt.

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Hares in Capita rose 9% to 28p this morning after the professional services company announced the sale of its fintech business Pay360 in a deal worth £156 million.

Manchester-based Pay360, which provides online payment processing services, has been snapped up by software firm The Access Group in a deal that it considers to be around 3.5 times its annual revenue.

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Capita boss John Lewis said: “The sale is a great opportunity for new owners to help Pay360 realize its full potential, and our partners at Pay360 will also benefit from this focus that will drive ownership change.”

It is the latest in a suit of settlement by Capita as Lewis attempts to scale down operations and pay off large sums of money to turn the firm’s fortunes. Capita finished last year off its settlement target, raising more than £700 million from the sale of its service brands, including £115 from IT consultancy Trustmark in March 2022 and £184 million from project management consultancy Excelos in June 2021.

The London-based outsourcing firm had generated over £1 billion in net debt by the end of 2020. The company’s share price has fallen 92% over the past five years.

Investors were disappointed in the time it took to sell non-core businesses as Lewis seeks to refocus the capita around public service work and customer management services.

The company was valued at £9.2 billion following a June 2022 funding round, after which Loughborough-based The Access Group became one of the most valuable software companies in the UK.

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