Capita PLC on Thursday said it will sell five non-core software businesses to London-based acquisition vehicle AdvancedAdvT Ltd, in what the latter said will constitute a reverse takeover.
Capita, a London-based process outsourcing and professional services company, said the sale for a total of £33 million includes the businesses CIBS, CHKS, Retain, WFM and Synaptic. The transaction is part of Capita’s disposals programme to ‘materially’ reduce its debt, Chief Executive Officer Jon Lewis explained.
CIBS offers financial and business solutions for public and private sectors. CHKS and Synaptic are for governance risk & compliance for healthcare and financial services sectors. Retain and WFM are for global professional services and workforce automation software for private and public sectors.
The business transfer is subject to UK National Security & Investment Act approval.
AdvancedAdvT said the sale would constitute a reverse takeover, with its shares being suspended upon Thursday’s announcement. Chair Vin Murria said: ‘We are excited to drive new opportunities, and with a substantial war chest, the business is well placed to execute merger & acquisition that is both synergistic and accretive over the longer term.’
St Helier, Jersey-headquartered closed-ended investment company Marwyn Value Investors Ltd noted the release. It owns an 18% stake in AdvancedAdvT.
Capita shares were 1.2% higher at 33.24 pence each in London on Thursday morning.
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