Capita Agrees To Sell Its Software Arm SSS To NEC Software For £62 Mln

Capita Plc (CPI.L), a consulting, transformation, and digital services provider, on Thursday said it agreed to sell its Secure Solutions and Services or SSS business to NEC Software Solutions UK Limited for an estimated 62 million pounds, on a cash free debt free basis.

As previously announced, the London-headquartered firm continues to make progress towards its target of 700 million pounds of proceeds from disposals in 2021 and the first half of 2022.

Adding the expected proceeds from the latest disposal to the amount that Capita has already raised, it would bring the total proceeds to about 600 million pounds, the British firm said.

The revenue and the reported profit before tax of the SSS business for the year to December 31, 2020 were 72 million pounds and 10 million pounds, respectively. The gross assets of the company were 63 million pounds as of June 30, 2021.

These figures also include a Radio Managed Service contract that is included in the sale and which is due to terminate at the end of 2022. The normalized revenue and EBITDA of the ongoing SSS business is circa 58 million pounds and eight million pounds per annum, respectively.

The SSS senior management team and employees are expected to be transferred with the business, the company added.

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