Wed, 08 Mar 2023 | BUSINESS SALE
Capita has completed another disposal after selling pre- and post-employment screening firm Security Watchdog to workplace technology company Matrix in a deal worth £14 million. The price represents a 9.3x multiple of Security Watchdog’s £1.5 million pre-tax profits for 2022, generated on revenue of £27.7 million.
The sale comes just days after Capita completed the disposal of resourcing businesses Capita Resourcing, HR Solutions and ThirtyThree to Inspirit Capital in a £21 million deal. Those three businesses, along with Security Watchdog, comprised Capita’s Modular People Solutions division.
The deals form part of Capita’s strategy to dispose of non-core units in order to strengthen its balance sheet and focus on its core divisions of Capita Experience and Capita Public Service. The sales come in the wake of several other disposals the group has made over recent years, including Pay360, CCIS and CMA. Capita says it expects to complete its remaining disposals during the first half of this year.
Security Watchdog is based in Basingstoke and is one of the largest suppliers of background checks in the EMEA region, as well as a partner to several clients around the globe. The buyer, Matrix, is owned by Bridgepoint Development Capital, a division of Bridgepoint Group Plc. Post-acquisition, Security Watchdog’s management team and staff will remain with the business.
Commenting on the latest sale, Capita CEO Jon Lewis 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."
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