Mon, 04 Oct 2021 | BUSINESS SALE
Capita has announced that it has agreed a deal to sell emergency services IT business Secure Solutions & Services (SSS) to NEC for £62 million. The price represents a 6.2x multiple of SSS’s pre-tax profits of £10 million in 2020, generated on £72 million revenue.
SSS is based in Chippenham and provides IT software and managed services to sectors including emergency services, global critical response, criminal justice and police. Post-acquisition, the business, which employs over 120 staff, will join NEC Software Solutions UK.
The sale forms part of Capita’s plan, announced earlier this year, to sell several non-core businesses in order to strengthen its balance sheet and address maturities. The company has a target of generating £700 million in proceeds from non-core sales across 2021 and the first half of 2022.
The sale of SSS, which is still subject to certain consents and approvals, will bring total proceeds from sales to £600 million. The sale is being carried out on a cash-free and debt-free basis and is expected to close by around the end of 2021.
Capita Chief Executive Jon Lewis said: "The disposal is another step towards a more focused and sustainable business for the long term. At the same time, our Secure Solutions & Services colleagues and clients will join an established industry organisation with plans to take the business onto the next stage of its development."
NEC Software Solutions UK CEO Tina Whitley said: “Emergency services face extreme challenges and pressures when deploying resources.”
“Our goal has always been to provide emergency services with innovative tools to be able to better protect the communities they serve. By bringing our two teams together, we create an enhanced platform to ensure we continue to do this as we innovate and grow.”
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