Business IT services firm Capita has reached a sale agreement with Clarity Travel for Capita's travel and events businesses Agiito and Evolvi. The deal is said to be 'an enterprise value of £36.5 million on a cash free, debt free basis'.
The financials are as follows: taking into account the working capital and debt liabilities that Clarity is assuming as part of the transaction, Capita expects to receive cash proceeds of £16 million, of which £8 million is payable on completion and £8 million is payable 12 months following completion. The sale to Clarity is subject to National Security and Investment Act approval.
Current employees and management teams will remain with the businesses as they transfer to the Clarity ownership.
"We are pleased to have agreed the sale of our travel and events businesses to Clarity, following a competitive sale process. The transaction offers significant growth opportunities for the businesses, their clients and colleagues. It 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," says Jon Lewis, Capita’s Chief Executive Officer who is stepping down from the position as he retires at the end of the year.
Image credit: Tomek Baginski