LONDON, UK: Capita plc has agreed to sell Security Watchdog, the pre-and post-employment screening solutions provider to Matrix, which is owned by Bridgepoint Development Capital, part of Bridgepoint Group Plc for an enterprise value of £14 million on a cash free, debt free basis.
Security Watchdog is the UK industry leader of digitalised, smart pre-and post-employment screening solutions, the largest EMEA supplier of background checks and a trusted partner to clients across the globe.
The reported revenue and profit before tax of Security Watchdog for the year to 31 December 2022 were £27.7m and £1.5m respectively.
Along with Capita Resourcing, HR Solutions and ThirtyThree, for which contracts were exchanged with Inspirit Capital on 6 March, Security Watchdog made up Capita’s Modular People Solutions business and our People Pillar within Capita Portfolio.
The Security Watchdog senior management team and employees will remain with their business as it transfers to the ownership of Matrix.
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 Security Watchdog 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 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.”
Capita is being advised on the Security Watchdog transaction by Rothschild & Co.