Capita agrees to sell Pay360 payments transactions arm to The Access Group in £150m deal
- The contractor said it would earn £15million in proceeds from the deal
- Pay360 processes card transactions for companies such as WH Smith and Plusnet
- Capita completed the sale of four businesses this year, such as Trustmarque
Capita announced an agreement to offload its payment transactions business as part of measures to streamline operations and reduce debt.
The outsourcing giant said it would earn £150m from the sale of Pay360 Limited to Access PaySuite, a division of software provider The Access Group.
Pay360 processes more than 250m card transactions worth over £11bn every year for big companies like WH Smith, broadband provider Plusnet and model train maker Hornby, according to its website .
Capita said Access PaySuite, a division of software provider The Access Group, had agreed to take over Pay360 Limited for gross proceeds of £156 million.
For the first half of this year, it had revenue of £27.3m, underlying profit of £10.5m and pre-tax profit of £3.1m sterling, while its gross assets at the end of June stood at £63.6 million.
Acceptance of the deal is subject to shareholder and Financial Conduct Authority approval, as well as confirmation from the UK government that no further action will be taken under national security law and the ‘investment.
Chief Executive Jon Lewis said the deal would be “a great opportunity for the new owners to help Pay360 realize its full potential, and our colleagues at Pay360 will also benefit from the attention this change in ownership will bring”.
He added, “Capita will use the cash proceeds from the sale to benefit our digital offerings for customers and further reduce net debt.”
Capita has already completed the sale of four businesses in 2022, including IT services company Trustmarque to the former JPMorgan investment bank and two specialty insurers to Marco Capital Holdings.
This helped to reduce its net arrears from £169.4m to £710.4m in the first six months of the year and brought total revenue from its disposal program to over £750 million.
Last month, the outsourcer also revealed that it had reached an agreement to sell two real estate and infrastructure consulting firms to WSP, one of the world’s largest professional services firms.
Capita further announced today that it has been awarded a contract extension to provide services to Barnet Council in London worth up to £57 million.
The arrangement will see the group modernize the local authority’s IT infrastructure and manage human resources and accounts payable services until August 2024, as well as IT, customer and benefits services until March 2026.
It will run from September next year when the current 10-year contract ends. After the initial deal was struck in 2013, Barnet Council was dubbed ‘easyCouncil’ by critics due to high levels of outsourced services.
Following these separate trading updates, Capita shares soared 12.6% to 28.7p on Friday, although their value is still around 93% lower than it was five years ago. year.