REG-Capita PLC: Completion of the sale of Education Software Solutions

CapitaAnnouncement

02/02/2021 17:50

Capita plc
(“Capita”)

Completion of the sale of Education Software Solutions (“ESS”) business

Capita is pleased to announce that it has completed the sale of its ESS
business to Tiger UK Bidco Limited, a newly formed company established by
funds advised by Montagu Private Equity (“Montagu”).

As previously announced on 14 December 2020 and 14 January 2021, the disposal
of the ESS business, a standalone business within the Capita group, supports
Capita’s ongoing strategy to “simplify, strengthen and succeed”.

The cash proceeds paid by Montagu in respect of the disposal were £298.5m. As
previously announced, an additional sum of £45m will be payable by Montagu to
Capita following receipt of certain regulatory approvals in respect of
Montagu’s agreed investment in ParentPay (Holdings) Ltd.

In accordance with the shareholder circular dated 16 December 2020, the net
proceeds from the disposal will be used to strengthen Capita’s balance sheet
and build a more focused, sustainable business for the long term.
Approximately £50m of those proceeds will be used to replace the remaining
value of an asset-backed financing agreement, relating to intellectual
property developed by ESS, which was entered into in 2012 with the Capita
pension scheme through the Capita Scotland (Pension) Limited Partnership.

For more information please contact:

Capita investor enquiries
Stuart Morgan
Director of Investor Relations
Tel: 07989 665484
Email: IRteam@capita.co.uk

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

Capita is a consulting, transformation and digital services 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.

Important Notices

This announcement is an announcement and not a circular or prospectus or
equivalent document and prospective investors should not make any investment
decision on the basis of its contents. Nothing in this announcement
constitutes an offer of securities for sale in any jurisdiction.

If you are in any doubt as to what action you should take in relation to this
announcement, you are recommended to seek your own personal financial advice
immediately from your stockbroker, bank manager, solicitor, accountant or
other independent financial adviser authorised under the Financial Services
and Markets Act 2000, or from another appropriately authorised independent
financial adviser.

This announcement is not for release, publication or distribution, in whole or
in part, in, into or from any jurisdiction where to do so would constitute a
violation of the relevant laws of that jurisdiction. Persons into whose
possession this announcement comes should inform themselves about, and
observe, such restrictions. Any failure to comply with the restrictions may
constitute a violation of the securities laws of any such jurisdiction.



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