Capita has agreed to sell its travel and events businesses Agiito and Evolvi to Clarity Travel for a deal valued at £36.5million.
The London-based outsourcer told investors the deal will be on a cash free and debt free basis and, after taking into account ‘the working capital and debt liabilities’ that Clarity will assume, Capita expects to receive cash proceeds totalling £16million.
UK corporate travel management firm Agiito and self-booking rail tool Evolvi’s combined reported revenue for the year to 31 December was £31million, with profits of £4million and gross assets of £76million as of 30 June.
Capita said it expects to receive ‘cash proceeds’ of £16million in the sale
Of the the £16million, £8million will be paid on completion with a further £8million being paid 12 months later, Capita said.
Senior management teams and employees at Agiito and Evolvi will remain when it transfers to Clarity.
Jon Lewis, chief executive officer, at Capita said: ‘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.’
Earlier this month, Capita shares slumped after the outsourcing group swung to a first-half loss and said March’s cyber attack would cost it more than previously expected.
The group, which has £6.5billion of public sector contracts including with the NHS, expects to incur costs of £20million to £25million as a result of the attack that left staff unable to access IT systems and disrupted services.
The figure is higher than the £15-£20million it had estimated in May and comprises ‘specialist professional fees, recovery and remediation costs, and investment to reinforce Capita’s cyber security environment’
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