Fri, 16 Sep 2022 | BUSINESS SALE
Business outsourcing firm Capita has agreed a deal to sell regulated payments business Pay360 to business management software provider The Access Group. The deal is valued at £150 million, which represents a 14.2x multiple of Pay360’s £10.5 million EBITDA for 2021, generated on revenue of £45.8 million.
The sale of Pay360, which reported pre-tax profits of £7.1 million last year, forms part of Capita’s strategy to create a “more focused, sustainable business for the long term”. The firm added that the sale will also strengthen its balance sheet, reduce debt and provide additional liquidity. It said it expects to receive gross proceeds of around £156 million upon the deal’s completion.
Pay360 is an FCA-regulated firm providing payment solutions, gateway and acquiring services to customers in both the public and private sectors. The company has around 2,500 customers and last year processed 142 million transactions with a total transaction value of £8.6 billion.
The firm has offices in both London and Manchester and last year moved into payment facilitation following the launch of its new platform Evolve.
The business has been acquired by Access PaySuite, a subsidiary of the Loughborough-based Access Group. The transaction remains subject to a number of conditions, which are expected to be satisfied towards the end of Q4 2022. Post-acquisition, Pay360’s senior team will transfer along with the business.
Commenting on the sale, Capita Chief Executive Jon Lewis said: "We announced our intention to sell Pay360 during our half-year results as part of our strategy to simplify and strengthen Capita. The sale is a great opportunity for the new owners to help Pay360 realise its full potential, and our colleagues at Pay360 will also benefit from the focus that this change of ownership will bring.”
"Capita will utilise the cash proceeds of the sale to benefit our digital offerings for clients and further reduce net debt. The Pay360 senior management team and employees will remain with the business as they transfer to new ownership."
Find businesses for sale here.
If you are looking for an exit, we can help!.
This is a unique opportunity to acquire a 50% shareholding in a boutique legal firm that provides cutting-edge tech support to the insurance sector, particularly in the Managing General Agent market.
This well-established West Midlands IFA, managing £200m in funds under management, offers a highly profitable client base with an average household value exceeding £400k.
An exclusive opportunity to acquire a prestigious ultra-high-net-worth independent financial advisory business in Kent, managing £70m in funds under management.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.