We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Well said Dave_1
Thanks alot for sharing your views. I totally agree with you but not with Bertles views.
Have a great weekend. GLA, DYOR.
Thanks NOFEAR, I think we need to stop engaging with bertles.
ESS won't go for less than 500 million. Any lower you will see the bidding process pulled and a sale of the company. Daily mail leaked the vultures lining up but ESS needed to be apart of the sale.
Also, the derampers going on about the recent ESS contract win being irrelevant... come on.. if anything it's added more cash to the sale.
Anyone getting in below 35p will win either way. Sale of ESS or company.
Have a good weekend all. (Apart from you Bertles.... you can start doing some research on Capita and back up your claims for once)
You're very welcome eatstocks
Thanks All, your rec clicks are very appreciated.
Have all a great weekend. NoFear
Thanks NOFEAR for sharing
Capita held well at its support level, its has lot of divisions to offload including ESS. I reckon it will hit levels what we saw in Jan 2020, unless the vultures buy it for 60p. UK market sentiment is terrible and it’s ignoring the fundamentals. In NHS they got lots of nice contracts and very lucrative, with little competition, which they will be keeping and enhancing , hence why getting leaner and fitter and offloading the not so important divisions. Good reviews guys, but strong hold don’t sell and give your stock to the Private equity vultures !!
Nothing, it was purely about a restructure for ESS pre sale.
Cards being held close to chest. 500m still the asking price, hard to believe. Sounds like something will happen in the next six weeks.
ESS has been running through lots of demos to interested parties.
Bertles
It's a NO COMMENT from me.
I shall wait for the Francisco Partners to update the Education Investor Global in due time.
As for my investment, I shall wait till that day to decide where I want to get off. Cya
There is no surprise that interested parties have baulked at the ESS £500m valuation and poured cold water all over it. That was obvious and have been saying that for a month.....
TPG dropped out 1st round, no surprise there. The parties remaining will most likely have tabled hard ball 'take it or leave it' offers.
As for valuation even £300-400m would be considered toppy in the current times. Capita would be doing exceptionally well given its market cap if they manage to get offers and interest in that ball park.
The problem is even if 'say' they get £400m..... the ESS sale wouldnt serve the purpose it has been put up for sale for?
They dont get the cash they actually needed and they also dispose of a profit making division?
It kind of harks back to the points passingthru and trytobuylow have been making all last month !!!
Schroders upp'd their stake to 10% last week and you've now seen a notification clarifying voting rights.........
YOU'RE ALL WONDERFUL--------------->>>>THANK YOU SO MUCH FOR THE REC'S-----GLA-DYOR-----NOFEAR
supermanny11
No probs. Please guys if you have found my extensive information on the ESS newstory,
I would kindly appreciate your 'recommend' clicks as it took me alot of efforts to gather
that very secrete inside information. As for Bertles, I'm afraid you're difficult to please.
Capita ESS, will most likely to be bought by the Francisco Partners who are still in the
next round of Capita preferred bidders who would pay more than the Bain Capital to
just get their hands on it. Please read PART1, 2 AND 3 to fully appreciate the article who
was brought to my attention by supermanny11. I'm looking forward to an excellent result.
Nofear - thanks for the update.
Still looking foward to hearing the offers.
Published - 30th September 2020 - By Education Investor -
Notes Extracted by NoFear - From this website; EducationInvestorGlobal: www.shorturl.at/ftuBL
[Capita’s Education Software Solutions (ESS) unit and the private bidders UPDATE]
[PART 3] FINAL.
“It has gotten so big in the US that it has struggled to continue growing,” the source said. “It has been looking at the UK to find a good-value platform that it can invest in and grow, leveraging the technology and experience it has built in the US. Because of the “strategic fit”, Francisco Partners “might be able to stretch a bit further on price” than Bain Capital, the source said, adding: “If I were a gambler, I’d put my money on Francisco Partners.”
Bain Capital declined to comment. Spokespeople for Goldman Sachs and Francisco Partners had not responded to requests for comment at the time of publication. Plans to sell Capita ESS were revealed exclusively by this publication in June, when the outsourcing giant had set its stall targeting a price-to-earnings multiple of 10-14 – suggesting the business would fetch £500-£700 million at auction.
Widely regarded as the crown-jewel asset of Capita ESS, SIMS, the UK’s largest and oldest school management information system (MIS) provider, enables schools to collect and monitor data on student attainment, parental engagement and financial management. More than 50 products are listed on its website, which are used by more than 21,000 schools in 49 countries.
The auction of Capita ESS – and with it SIMS – triggered a wave of activity in the UK MIS market.
In July, Education Investor Global revealed that three private equity firms had been competing to acquire a minority stake in a new entity that will be formed by a merger of Arbor Education and The Key. Earlier this month, we reported that CBPE Capital had entered exclusive talks to acquire a slice of the joined-up firm.
Meanwhile, the shareholders of iSAMS, the UK private school sector’s favoured MIS provider, earlier this month instructed corporate financiers from Grant Thornton to explore options around a sale.
Published - 30th September 2020 - By Education Investor -
Notes Extracted by NoFear - From this website; EducationInvestorGlobal: www.shorturl.at/ftuBL
[Capita’s Education Software Solutions (ESS) unit and the private bidders UPDATE]
[PART 2]
Bain Capital is “especially unlikely to get to that [£500 million] price”, said one source. This is because the $105 billion private equity firm has a history of buying companies at cut rates and leveraging its in-house management consultancy, Bain & Company, to drive value growth throughout the holding period, the person added.
Nevertheless, Bain Capital is “in a good position”, the source said, after it “hung around the hoop” in the face of punchy price expectations. “There was a bit of concern [within Bain Capital] when the £500 million-plus numbers were being touted,” said the source. “Bain wouldn’t get to that price. If pricing stayed that high, they wouldn’t prevail. But they have stuck it out as others [TPG Capital] have fallen away. The type of investment this is involves rolling up the sleeves and getting hands dirty – something at which Bain is experienced.
Another insider said that Bain Capital is “gung-ho”, and has hired a number of advisors – including EY-Parthenon to conduct financial due diligence – to help it formulate a second-round bid, due at the month’s end. It is understood that Bain & Company has also been mandated in an advisory capacity.Francisco Partners, which manages $12 billion of assets, is also in with a chance of acquiring Capita ESS for below the initial asking price – but could be willing to pay more than Bain Capital.
Renaissance Learning, which Francisco Partners took over in 2018, is described by the source as “a bit of a beast with a huge presence in the US” that sells products and services to schools similar to those offered by Capita’s SIMS. The company’s annual EBITDA exceeds $100 million, it is understood. Under the ownership of Francisco Partners, Renaissance Learning has been “eyeing the UK market for several years” as an avenue to further growth after the pace at which it had been amassing scale in the US slowed.
Published - 30th September 2020 - By Education Investor -
Notes Extracted by NoFear - From this website; EducationInvestorGlobal: www.shorturl.at/ftuBL
[Capita’s Education Software Solutions (ESS) unit and the private bidders UPDATE]
[PART 1]
Price expectations for a sale of Capita’s Education Software Solutions (ESS) unit have softened significantly after bidders baulked at bankers’ initial asking price of £500 million-plus, leading one to drop out, Education Investor Global can reveal.
This publication has learnt that Capita ESS, originally touted by bankers from Goldman Sachs at £500-£700 million, is likely to change hands for closer to £400 million due to extensive post-purchase costs to be incurred by an acquirer.
Multiple sources confirmed that TPG Capital, the US-based buyout house that had tabled a first-round bid alongside Bain Capital and Montagu Private Equity, has dropped out of the race to acquire Capita ESS.Sources said that Bain Capital and Montagu Private Equity have both been admitted into the second round of bidding for Capita ESS, whose SIMS platform is used by 80% of UK state schools.
So has Francisco Partners, another American private equity firm, which would look to acquire Capita ESS through its portfolio company Renaissance Learning, a cloud-based assessment, teaching and learning solutions provider to over a third of US schools.
But none of the suitors has so far shown willingness to pay at least £500 million for Capita ESS, two sources said, whose parent’s market capitalisation, at present, is only £497 million. It is “not very normal”, said an experienced deal-maker, for a carved-out company to be valued in excess of its owner.
There is “no way” that Capita will achieve £500 million for its ESS division, said one source close to the auction, pointing to SIMS’ “shrinking” market share and the post-takeover cost of modernising the antiquated platform, which runs on in-school data servers.
Another source suggested that “it will probably take two years” to get SIMS “back on the path to growth” and prevent it from losing further customers to cloud-based competitors such as Arbor and The Key – which are set to merge this month – BromCom and Juniper.
Both the insiders said that Capita ESS will trade at “closer to” £400 million than £500 million, with the former figure representing eight-times its annual earnings before interest, tax, depreciation and amortisation (EBITDA) of £50 million.
The pricing recalibration will deal a blow to vendor Capita, which had been slated to use the proceeds from a sale of its ESS unit to clear some of its debt, which totalled nearly £2 billion last year, during which it lost £64.2 million while revenue dipped 6% to £3.68 billion.
Nothing of interest.
So what does that mean in layman's terms?
I meant from blankcanvas post earlier today...dont think that would have been it.
Saw this earlier today. Private equity bidders pour cold water on price expectations for Capita ESS Price expectations for a sale of Capita’s Education Software Solutions (ESS) unit have softened significantly after bidders baulked at bankers’ initial asking price of £500 million-plus, leading one to drop out, EducationInvestor Global can reveal. Posted by: EducationInvestor, on 30/09/2020
Still waiting optimistically. Dyor gla let the shorters burn.
Notification of alteration to total voting rights in accordance with the FCA's Disclosure Guidance and Transparency Rules provision 5.6.1R.
The Company advises that its capital consists of 1,671,273,523 ordinary shares of 2 1/15p each, as at 30 September 2020. The voting rights of these shares are identical with each share carrying the right to one vote. The Company currently holds 2,299,955 ordinary shares in Treasury. Therefore, the total number of voting rights in Capita plc is 1,668,973,568.
The above figure, 1,668,973,568 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, Capita plc under the FCA's Disclosure Guidance and Transparency Rules.
In addition, the above figure includes 12,630,742 shares currently held by the Capita Employee Benefit Trust and therefore excluded from the Company’s EPS calculation.
Any update?
There is a transformation update for all staff today. Might be to say that it's on or off target.