LONDON, UK: Capita plc has agreed to sell its resourcing businesses Capita Resourcing, HR Solutions and ThirtyThree to Inspirit Capital, for £21 million on a cash free, debt free basis.

Capita expects to receive cash proceeds of £17m – which includes a deferred payment of c.£7m receivable by Capita on 30 November 2023.

These businesses are some of the UK’s leading providers of human capital resourcing services to both the public and private sectors. The senior management teams and employees will remain with their businesses as they transfer to the ownership of Inspirit Capital.

The reported revenue and profit before tax of the combined businesses for the year to 31 December 2022 were £78m and £10m respectively and gross assets were £35m at 31 December 2022.

The sale to Inspirit Capital is subject to National Security and Investment Act approval.

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 these resourcing businesses 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 resourcing services businesses to Inspirit Capital, following a competitive sale process. The transactions offer significant growth opportunities for the businesses, their clients and colleagues.

“It also marks another significant step towards reducing Capita’s debt, as we continue to simplify and strengthen the organisation, and become a more successful business for the long term. We remain focused on selling the majority of the remaining non-core Portfolio businesses throughout the first half of 2023 depending on general market conditions.”

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