(Alliance News) - Capita PLC on Thursday announced that it has agreed to sell its travel and events businesses, Agiito and Evolvi, for an enterprise value of GBP36.5 million.
The businesses are being sold to Clarity Travel Ltd, the business travel and events division of Portman Travel Group Ltd, which holds a UK-focused portfolio of travel businesses.
As Clarity is assuming working capital and debt liabilities as part of the transaction, Capita expects to receive GBP16 million for the sale. Of this, GBP8 million is payable on completion, with the remaining GBP8 million balance payable 12-months after.
The proceeds of the sale will be used to further strengthen the company's balance sheet and reduce debt, 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," Chief Executive Jon Lewis said.
Agiito is a UK travel, meetings and events management intermediary. Evolvi is a specialist B2B rail ticket issuing platform provider.
The combined businesses reported revenue of GBP31 million in 2022 and a pretax profit of GBP4 million.
Shares in Capita fell 0.2% to 19.49 pence on Thursday morning in London.
Capita is a consulting, transformation and digital services firm. It is based in London.
By Heather Rydings, Alliance News senior economics reporter
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