Capita PLC Disposal

 
TIDMCPI 
 
Capita announces the disposal of Supplier Assessment Services including 
                               Constructionline 
 
Capita plc (Capita) announces today that it has reached an agreement to sell 
Supplier Assessment Services, including Constructionline, to funds affiliated 
with Warburg Pincus.  On completion, which is expected to be early July 2018, 
Capita will receive GBP160m in cash. The transaction is in line with Capita's 
strategy of simplifying the Company, focussing on key growth markets and 
disposing of non-core businesses, as announced on 23 April 2018. Net cash 
proceeds from the disposal will be used to reduce indebtedness. 
 
Capita has successfully managed, invested in and commercialised Supplier 
Assessment Services and rapidly grown the business, particularly since 
acquiring Constructionline in January 2015, having previously operated it as a 
concession. 
 
Supplier Assessment Services underlying revenue and operating profit were GBP14m 
and GBP6m respectively in the year to 31 December 2017 and the business had gross 
assets of GBP26m. Supplier Assessment Services' results in 2018 will be reported 
as a business exit in non-underlying items. 
 
Jon Lewis, Chief Executive Officer, Capita, said "This transaction marks a 
further step in executing the strategy announced in April aimed at simplifying 
and strengthening the business to deliver future success and contributing to 
realising GBP300m from non-core disposals in 2018." 
 
Goldman Sachs International acted as sole financial advisor on the transaction. 
 
This announcement contains inside information. 
 
ENDS 
 
Notes to editors: 
 
Supplier Assessment Services is one of the UK's largest procurement, health & 
safety accreditation and supply chain management services, reducing the annual 
cost for buyers and suppliers, particularly SMEs, of repeatedly providing 
pre-tender information in the public and private sectors. Supplier Assessment 
Services includes Constructionline, Acclaim and Safety Climate Tool. 
 
For further information: 
 
Capita plc: Investor enquiries 
 
Andrew Ripper, Head of Investor Relations 
Fiona O'Nolan, Investor Relations Director 
Tel: [phone] or 020 7654 2281 
[e-mail] 
 
Media enquiries: 
 
Capita Press Office 020 7654 2399 
[e-mail] 
 
Capita is a leading provider of technology enabled business services, operating 
across five key markets: Software; People Solutions; Customer Management; IT 
Services and Government Services. Working across the UK, Europe, India and 
South Africa, we use our expertise, talent and technology to partner with our 
clients to transform services and add value for all their stakeholders. Capita 
is quoted on the London Stock Exchange (CPI.L). Further information on Capita 
can be found at: http://www.capita.com 
 
Goldman Sachs International, which is authorised by the Prudential Regulation 
Authority and regulated by the Financial Conduct Authority and the Prudential 
Regulation Authority in the UK, is acting exclusively for Capita plc and no one 
else in connection with the potential sale of Supplier Assessment Services 
Limited and any other matter referred to in this announcement and will not be 
responsible to anyone other than Capita plc for providing the protections 
afforded to clients of Goldman Sachs International, or for providing advice in 
relation to the potential sale of Supplier Assessment Services Limited or any 
other matter referred to in this announcement. 
 
LEI no. CMIGEWPLHL4M7ZV0IZ88. 
 
 
 
END 
 

(END) Dow Jones Newswires

June 19, 2018 02:00 ET (06:00 GMT)