UK-based Capita has flogged off its standalone software business, Capita One, to MRI Software for £200 million.
The deal, about ten times Capita One’s 2023 EBITDA of £21 million, is expected to be completed by August 2024, pending shareholder approval and regulatory clearance.
Capita One provides software solutions for local authorities, education authorities, and housing associations. In 2023, it generated £55m in revenue and £19m in profit before tax.
The business helps public sector organisations improve efficiency, maximise revenue collection, and deliver cost-effective essential services.
Capita’s CEO, Adolfo Hernandez said: “Capita One is a high-quality business that has performed exceptionally well. Under its new owner, it is well positioned to benefit from investment in its strategic growth.”
He added that the sale aligns with Capita’s strategy to become more focused and prioritise businesses with significant future opportunities.
This sale is part of Capita’s plan to streamline its operations and reduce debt.
Upon completion, the company expects to receive around £207 million in gross cash proceeds, plus a pre-completion cash dividend of £4.8m from Capita One.
MRI Software, a real estate software solutions provider, said it plans to support Capita One’s growth and further develop its product portfolio and customer base.
The acquisition is expected to strengthen MRI Software’s position in the public sector software market.
