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Capita to reduce debt after tying up £156mln sale of payment service 

Capita PLC has completed the sale of its Pay360 business for £156mln, hoping the proceeds will help reduce its debt

Capita PLC (LSE:CPI) has completed the sale of its Pay360 business for £156mln, which it plans to use to strengthen its balance sheet, reducing net debt and providing additional liquidity.

The outsourcer confirmed on Thursday that the necessary regulatory and shareholder approvals had been given for the disposal to The Access Group, which was first agreed in mid-September.

An online payment service, Pay360 processed some £8.6bn in transactions in 2021 and is used by the likes of KPMG, Royal London and WH Smith PLC (LSE:SMWH).

Earlier this year, Capita reported net debt of £710.4mln, down from nearly £900mln in 2021.

Its chief executive, Jon Lewis, commented: “We are well positioned for growth in the second half of the year and beyond; and our full-year commitments remain on track.”

Yet to releasee its full year results, the consulting, transformation and digital services business previously hinted that it was continuing to build back against the backdrop of Covid-19 and the global economic downturn.

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