LONDON, UK: Capita plc has agreed to sell its Secure Solutions and Services (SSS) business to NEC Software Solutions UK Limited for a consideration expected to be £62 million, on a cash free debt free basis, a bourse filing said.
SSS is a provider of software solutions and managed services to the emergency services and justice sectors.
Earlier this year, Capita announced its intention to sell a number of non-core businesses which will be used to strengthen the balance sheet and address upcoming maturities. Capita continues to make good progress towards its target of £700m of proceeds from disposals in 2021 and the first half of 2022. Adding the expected proceeds from this disposal to the amount that Capita has already raised would bring the total proceeds to circa £600m.
The sale of SSS is subject to relevant approvals including customers and regulators.
The revenue and the reported profit before tax of the SSS business for the year to 31 December 2020 were £72m and £10m respectively, and the gross assets were £63m at 30 June 2021. These figures also include a Radio Managed Service contract that is included in the sale and which is due to terminate at the end of 2022. The normalised revenue and EBITDA of the ongoing SSS business is circa £58m and £8m per annum respectively.
The SSS senior management team and employees will be transferring with the business.
Jon Lewis, Capita’s Chief Executive Officer, said: “We are pleased to have agreed the sale of our Secure Solutions and Services business to NEC Software Solutions UK Limited following a competitive sale process.
“We announced our intention to sell SSS earlier this year as part of our ongoing strategy to simplify and strengthen Capita.
“The disposal is another step towards a more focused and sustainable business for the long term.
“At the same time, our SSS colleagues and clients will join an established industry organisation with plans to take the business onto the next stage of its development.”
SSS is a leading provider of software solutions and managed services to the emergency services and justice sectors. It also has software and support services installed in 15 countries across five continents, protecting 135 million people.
SSS has been delivering advanced integrated systems to emergency services for more than 30 years. The main part of the business was acquired by Capita in 2010, from Sungard Data Systems Inc, and through further investment and acquisition has expanded its capabilities to provide a full end-to-end portfolio of solutions.
It has an extensive portfolio of more than 150 customers, which includes many of the largest, most complex agencies across police, fire and ambulance services, as well as other public safety customers.
NEC Software Solutions UK has a proven history of developing innovative software for the public sector. www.necsws.com
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30 Sep, 4:35 pm GMT+1 ·Disclaimer
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