REG-Capita PLC: Capita agrees to sell Security Watchdog

CapitaAnnouncement

08/03/2023 10:45

Capita agrees to sell Security Watchdog

Capita plc (‘Capita’) today announces that it has agreed to sell Security
Watchdog, the pre-and post-employment screening solutions provider to Matrix,
which is owned by Bridgepoint Development Capital, part of Bridgepoint Group
Plc for an enterprise value of £14m on a cash free, debt free basis.

Security Watchdog is the UK industry leader of digitalised, smart pre-and
post-employment screening solutions, the largest EMEA supplier of background
checks and a trusted partner to clients across the globe.

The reported revenue and profit before tax of Security Watchdog for the year
to 31 December 2022 were £27.7m and £1.5m respectively.

 Along with Capita Resourcing, HR Solutions and ThirtyThree, for which
contracts were exchanged with Inspirit Capital on 6 March, Security Watchdog
made up Capita’s Modular People Solutions business and our People Pillar
within Capita Portfolio.

The Security Watchdog senior management team and employees will remain with
their business as it transfers to the ownership of Matrix.

Capita previously announced its intention to sell a number of non-core
businesses to strengthen the balance sheet and focus on its two core
divisions, Capita Public Service and Capita Experience. The agreement to sell
Security Watchdog follows the recent disposal of our Pay360 payments
processing business, two real estate and infrastructure consultancy
businesses, as well as Optima Legal, and Capita Translation and Interpreting.

Jon Lewis, Capita’s Chief Executive Officer, said: “We are pleased to have
agreed the sale of our Security Watchdog business to Matrix following a
competitive sale process.

“This was one of a number of Capita businesses which were successful but did
not form part of our core growth strategy, and which will benefit from
opportunities under new owners.

“The sale marks another step for our successful disposals programme which
has enabled us to significantly strengthen the balance sheet and materially
reduce our debt.

“We are targeting for the majority of the remaining businesses within our
non-core Portfolio division to be sold during the first half of 2023,
depending on general market conditions.”

Capita is being advised on the Security Watchdog transaction by Rothschild &
Co.

For more information, please contact:

Investor enquiries 

Helen Parris

Director of Investor Relations

Tel: 07720 169269

Email: IRteam@capita.co.uk 

Media enquiries

Capita external communications

Tel: 0207 654 2399

Email: media@capita.co.uk

About Capita plc

Capita is a leading provider of business process services, driven by data,
technology and people. We are a purpose-led, responsible organisation­. Every
day our 50,000 colleagues help millions of people, by delivering innovative,
digitally enabled solutions to transform and simplify the connections between
government and citizens, businesses and customers. We partner with our clients
and provide the insight and 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 Security Watchdog

Security Watchdog is the UK industry leader of digitalised, smart pre-and
post-employment screening solutions, the largest EMEA supplier of background
checks and a trusted partner to clients across the globe.

About Matrix

Matrix is a market leading workforce technology and services business that
connects workers to work opportunities by providing a neutral vendor service
and end-to-end process in one complete platform. Through a combination of
people, processes and technology, which analyses data in real-time, it
streamlines the way organisations recruit temporary, interim and permanent
staff through a range of tailored staffing solutions. Matrix removes the
complexity of the supply chain to help customers deliver on higher and faster
fulfilment, giving them greater control, consistency of supply, transparency,
and 100% compliance, while driving cost savings. Founded in 2008, Matrix is
headquartered in Milton Keynes, UK. It works with over 100 organisations
across the UK, across both private and public sectors. Find out more
at https://teammatrix.com/ 



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