AdvancedAdvT completes £33 million acquisition of Capita Plc software businesses

LONDON, UK: AdvancedAdvT Limited (LSE: ADVT), the investment vehicle led by tech entrepreneur Vin Murria, has completed the acquisition of five software businesses from Capita plc, the outsourcing giant.

The deal, which was announced on 8 June 2023, involved a cash payment of approximately £33 million, funded by the Company’s cash reserves. The acquired businesses are: Eclipse Legal Systems, which provides case management software for law firms; PageOne Communications, which offers messaging solutions for the public and private sectors; Brightwave Group, which specialises in digital learning and performance support; Capita Education Software Solutions, which provides software for schools and colleges; and Trustmarque Solutions, which delivers IT services and solutions.

The acquired businesses generated a total revenue of approximately £35 million in the year ended 31 December 2022, with approximately 74% of the revenue being recurring or from Software-as-a-Service (SaaS). The acquisition is expected to enhance AdvancedAdvT’s portfolio of software assets and create synergies and cross-selling opportunities.

The acquisition was conditional upon National Security and Investment Act approval, which has been received. The acquisition constitutes a reverse takeover under the Listing Rules and accordingly the Company will need to apply for re-admission of its shares to the Official List. Until such time as the Company is able to provide full disclosure under Listing Rule 5.6.15, the Company’s shares will remain suspended on the standard segment of the Official List and trading from the London Stock Exchange.

The Company is considering making an application for admission of the Company’s shares to trading on AIM, which would necessitate the publication of an admission document and compliance with customary regulatory requirements.

Vin Murria, CEO of AdvancedAdvT, said: “We are delighted to complete this acquisition, which adds five high-quality software businesses to our portfolio. These businesses have strong market positions, loyal customer bases and attractive growth prospects. We believe we can unlock their full potential by leveraging our operational and financial expertise and our network of contacts. We look forward to working with the management teams and employees of these businesses to create value for our shareholders.”

Jon Lewis, CEO of Capita plc, said: “This transaction is part of our strategy to simplify Capita and focus on our core strengths. We are pleased to have found a good home for these software businesses, which have performed well under our ownership. We wish them and AdvancedAdvT all the best for the future.”

Capita Plc agrees to sell software businesses to AdvancedAdvT