LONDON, UK: Capita plc has agreed to sell its travel and events businesses Agiito and Evolvi to Clarity Travel Ltd for an enterprise value of £36.5m on a cash free, debt free basis.
Taking into account the working capital and debt liabilities that Clarity is assuming as part of the transaction, Capita expects to receive cash proceeds of £16m, of which £8m is payable on completion and £8m is payable 12 months following completion.
The senior management teams and employees will remain with their businesses as they transfer to Clarity, the business travel and events division of the Portman Travel Group Ltd.
The reported revenue and profit before tax of the combined businesses for the year to 31 December 2022 were £31m and £4m respectively, and gross assets were £76m at 30 June 2023.
The sale to Clarity is subject to National Security and Investment Act approval.
The agreement to sell these Capita businesses follows the completion of the divestment of our Software, Enforcement and PageOne businesses in July. The sale also marks the penultimate transaction before the completion of Capita’s non-core disposals programme.
The proceeds, net of transaction costs, will be used to further strengthen the balance sheet and reduce debt.
Jon Lewis, Capita’s Chief Executive Officer, said: “We are pleased to have agreed the sale of our travel and events businesses to Clarity, following a competitive sale process.
“The transaction offers 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.”
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