REG-Capita PLC: Capita agrees to sell Trustmarque

CapitaAnnouncement

28/01/2022 07:05

28 January 2022

This announcement contains inside information.

Capita agrees to sell Trustmarque

Capita plc (‘Capita’) today announces that it has agreed to sell
Trustmarque (‘Trustmarque’) to One Equity Partners for £111m on a cash
free, debt free basis. Taking into account cash-like and debt-like items,
Capita expects to receive net proceeds of c.£115m at completion. An
additional c.£3m is receivable by Capita contingent on certain future events.

Trustmarque provides IT services and solutions, including software and
hardware re-sale, and is a top-tier partner for global technology vendors.

The net reported revenue and profit before tax for the assets subject to
transaction for the year to 31 December 2020 were £122m and £16m
respectively. Gross assets were £240m at 30 June 2021.

The sale is subject to certain consents.

The Trustmarque senior management team and employees will remain with the
business.

Capita previously announced its intention to sell a number of non-core
businesses, including Trustmarque, to strengthen the balance sheet and focus
on its two core divisions, Capita Public Service and Capita Experience.

The sale of Trustmarque follows the recently completed sales of software
businesses AMT Sybex, and Secure Solutions and Services. The proceeds from
this sale, subject to successful completion, mean we will have already hit the
target we set of £700m in total disposal proceeds by June 2022.

Jon Lewis, Capita’s Chief Executive Officer, said: “We are pleased to have
agreed the sale of Trustmarque to One Equity Partners following a competitive
sale process.
 

“I am delighted that, once this sale is completed, we will have exceeded our
disposals target – and achieved this much earlier than originally planned.

“It marks another significant step towards materially reducing our debt, as
we continue to simplify and strengthen Capita, and become a more successful
business for the long term.

“We are now focused on selling the remaining businesses in our Portfolio
division, with the goal of disposing of the majority by the end of 2022.”

Barclays Bank PLC, acting through its Investment Bank (‘Barclays’) is
acting as sole financial advisor to Capita.

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: www.capita.com

About Trustmarque
Trustmarque forms the technology pillar in Capita’s Portfolio division, and
provides software and hardware re-sale, IT managed services, IT professional
services, unified communications, testing and quality assurance and security
penetration testing. The business is a top-tier partner for the foremost
technology vendors. Trustmarque delivers integrated services that support UK
organisations through every step of the IT investment process, from solution
development through technology provision to deployment and on-going support.
The business operates across a number of core sectors – healthcare, central
and local government, and corporates – and has been helping both public and
private sector clients transform, integrate and simplify their technology and
IT services in a compliant way for more than 30 years. For more information,
go to: www.trustmarque.com

About One Equity Partners
One Equity Partners (‘OEP’) is a private equity firm focused on the
industrial, healthcare, and technology sectors in North America and Europe.
The firm builds market-leading companies by identifying and executing
transformative business combinations. OEP is a trusted partner with a
differentiated investment process, a broad and senior team, and an established
track record generating long-term value for its partners. Since 2001, the firm
has completed more than 300 transactions worldwide. OEP, founded in 2001, spun
out of JP Morgan in 2015. The firm has offices in New York, Chicago,
Frankfurt, and Amsterdam. For more information, please
visit www.oneequity.com.

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