LONDON (dpa-AFX) - Capita plc (CPI.L), on Monday, announced that Capita and Cabinet Office have agreed to sell AXELOS Ltd. to PeopleCert International Ltd. in a deal that values the joint venture at £380.0 million on a cash-free, debt-free basis, representing an 11.5x multiple on 2020 EBITDA of £33.1 million.
Upon completion, Capita would receive net cash proceeds of £172.5 million from the sale of Capita's 51% interest in AXELOS. Prior to completion, Capita would also receive a cash dividend of £11.1 million making total net cash receipts of £183.6 million.
This would provide additional liquidity to strengthen Capita's balance sheet, meet upcoming debt maturities and support the ongoing implementation of its transformation plan. As part of the PeopleCert investment in AXELOS, FTV Capital Management would become a minority shareholder in PeopleCert.
The sale of AXELOS follows a strategic review of the joint venture by Capita and Cabinet Office and comes as Capita moves into the next phase of its transformation.
As Capita holds a 51% interest in AXELOS, it is included in the Capita Group's consolidated accounts. The gross assets of AXELOS at, and the profit before tax for the year to, 31 December 2020, were £115.7 million and £24.3 million respectively.
Capita further stated that it continues to make good progress with its planned disposals, and remains on track to realise combined proceeds of at least £200 million this year, in addition to the £299 million initial payment received from the sale of ESS in February.
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