Capita sells off another business as it continues to 'simplify and strengthen'

The professional services giant confirmed it has agreed to sell Pay360 to Access PaySuite

Capita has sold off another company as it looks to make further progress in its strategy to build a "more focussed and sustainable" business in the future.

The professional services giant confirmed it has agreed to sell Pay360 to Access PaySuite in a £150m deal on a cash-free and debt-free basis.

Pay360 is a UK-based, FCA regulated payments business with 2,500 customers across the public and private sectors.

Capita says the businesses offers its customers gateway and acquiring services as well as payment solutions across the payments value chain.

It's gross assets at 30 June 2022 were £63.6m and for the year to 31 December 2021 it generated revenue of £45.8m, EBITDA of £10.5m and profit before tax of £7.1m.

Capita CEO Jon Lewis said selling the company is part of its strategy to "simplify and strengthen" Capita as well as being an opportunity for Pay360 to reach its "full potential".

He added: "We are pleased to have agreed the sale of Pay360 to Access.

"The sale is a great opportunity for the new owners to help Pay360 realise its full potential, and our colleagues at Pay360 will also benefit from the focus that this change of ownership will bring."

The Pay360 senior management team and employees will remain with the business as they transfer to new ownership.

The sale comes after Capita sold off its Capita Real Estate and Infrastructure (‘REI') and GL Hearn (‘GLH') businesses to WSP in August.

Secure Solutions and Services, AMT Sybex, two Specialty Insurance businesses, and Trustmarque are among business that were also sold this year.

Capita is selling off businesses as it looks to strengthen the balance sheet and focus on its two core divisions, Capita Public Service and Capita Experience.

"The sale of Pay360 follows a strategic review of the business by Capita and represents further progress in our strategy to build a more focused, sustainable business for the long term," Capita said in a statement.

Lewis added: "Capita will utilise the cash proceeds of the sale to benefit our digital offerings for clients and further reduce net debt."