REG-Capita PLC: Disposal of Eclipse Legal Systems

CapitaAnnouncement

19/06/2020 15:00

19 June 2020

This announcement contains inside information for the purposes of article 7 of
EU Regulation 596/2014.

LEI no. CMIGEWPLHL4M7ZV0IZ88

CAPITA PLC

DISPOSAL OF ECLIPSE LEGAL SYSTEMS

Capita plc (“Capita”) today announces that it has agreed to sell 100% of
the shares of Eclipse (Hardware) Limited trading as Eclipse Legal Systems
(“Eclipse” or the “Company”) to Access UK Limited (“Access”).

Eclipse is a successful mid-market case, matter and practice management
software provider operating in the UK legal market.

The total agreed consideration reflects an enterprise value of £56.5m on cash
and debt free basis(1) which represents a multiple of 14.1 times Eclipse’s
adjusted(2) earnings before interest, tax, depreciation and capitalised
development costs, and is payable on completion, later this month.

The transaction is due to complete on 30 June 2020 and is not subject to any
conditions. Proceeds from the transaction will be used to strengthen
Capita’s balance sheet.

The statutory gross assets of Eclipse at 31 December 2019 were £20.5m(3)
and the statutory profit before tax for the year ended 31 December 2019 was
£5.5m.

All of the Eclipse Senior Management Team will be transferring with the
business.

Jon Lewis, Capita’s Chief Executive Officer, said “This disposal forms
part of Capita’s strategy to simplify, strengthen and succeed. It will help
us simplify by disposing of a standalone business, while the disposal proceeds
will help strengthen Capita’s balance sheet. At the same time, our
colleagues at Eclipse will benefit from a committed new owner, supporting
further investment and growth.”

Pete O’Brien, Managing Director of Eclipse, said “We are excited about
this transaction. With the support of Access, we are committed to delivering
continued growth and investment in our products for our clients as well as
working with Access to identify areas of potential revenue synergies”.

Capita is being advised by Harris Williams on the transaction.

For more information please contact:

Investor enquiries
Stuart Morgan
Tel: 07989 665484
Email: IRteam@capita.co.uk

Media enquiries
Capita external communications
Tel: 0207 654 2399
Email: media@capita.co.uk

Note
1.
Gross proceeds of £58.4m in cash with net proceeds of £53.2m following the
repayment of an intercompany balance.
2.
Last 12 months to 30 April 2020 adjusted standalone EBITDAC.
3.
Balance sheet adjustments since the statutory reporting date mean that gross
assets relating to the transaction are £7.6m.

About Capita

Capita is a consulting, digital services and software business. Every day our
61,000 colleagues help millions of people, by delivering innovative solutions
to transform and simplify the connections between businesses and customers,
governments and citizens. We partner with 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 in the
UK, Europe, India and South Africa – and across six divisions: Customer
Management; Government Services; People Solutions; Software; Specialist
Services; and Technology Solutions. Capita is quoted on the London Stock
Exchange (CPI.L). Further information can be found at: http://www.capita.com.



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