Capita offloads Pay360 in £150 million deal
Capita has agreed to sell Pay360 to Access PaySuite, a division of The Access Group in a £150m cash and debt free deal.
Pay360 is a UK-based, FCA regulated payments business with c.2,500 customers across the public and private sectors. In 2021, the business processed £8.6bn in transaction value across 142 million transactions.
The sale represents a 14.3x multiple on 2021 EBITDA of £10.5m. Taking into account cash-like and debt-like items, Capita expects to receive gross proceeds of c.£156m upon completion.
It said the deal will help reduce indebtedness and provide additional liquidity, and further strengthen its balance sheet, whilst also allowing Capita to enhance its digital offerings for clients.
Jonathan Lewis, Capita’s chief executive, said: “We announced our intention to sell Pay360 during our half year results, as part of our strategy to simplify and strengthen Capita.
“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. Capita will utilise the cash proceeds of the sale to benefit our digital offerings for clients and further reduce net debt.”
The Pay360 senior management team and employees will remain with the business as they transfer to new ownership.