REG-Capita PLC: Capita agrees to sell Secure Solutions and Services

CapitaAnnouncement

01/10/2021 07:05

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 (http://necsws.com/).

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