Outsourcing group Capita PLC has agreed to sell its travel and events businesses Agilto and Evolvi to the Clarity Travel Management travel agency for an enterprise value of £36.5 million.
The deal was struck on a cash-free and debt-free basis and marks one of the last transactions before completion of the London-listed company’s non-core disposals programme.
Minus working capital and debt liabilities that Clarity is assuming, Capita is expected to receive cash proceeds of £16 million, with £8 million payable on completion and £8 million payable in 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.
Agilto and Evolvi generated respective revenues of £31 million and £4 million in the last financial year. Combined gross assets as of 30 June 2023 were £76 million.
Capita stated that the proceeds of the sale will be used to further strengthen the balance sheet and reduce debt.
The sale comes as Capital grapples with expenses related to a cyber attack in March which is expected to cost between £20 million and £25 million.
Capita, which has contracts with the NHS, the army and the Cabinet Office, previously said March’s attack would cost between £15 million £20 million.
“We are pleased to have agreed the sale of our travel and events businesses to Clarity, following a competitive sale process,” stated Jon Lewis, Capita’s chief executive. “The transaction offers significant growth opportunities for the businesses, their clients and
colleagues.”
Lewis added that the sale “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”.
Capita’s share price fell sharply after announcing the true cost of the March cyber attack, trading over 21% lower at 19.82p year to date.