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(Sharecast News) - Capita has agreed to sell its Secure Solutions and Services (SSS) business to NEC Software Solutions UK, it announced on Friday, for £62m on a cash-free, debt-free basis.
The FTSE 250 outsourcing giant described SSS as a provider of software solutions and managed services to the emergency services and justice sectors.
Earlier in the year, Capita announced its intention to sell a number of non-core businesses in a bid to strengthen its balance sheet and address upcoming maturities.
It said it was making "good progress" towards its target of £700m of proceeds from disposals in 2021, and the first half of 2022.
Adding the expected proceeds from the disposal to the amount Capita had already raised would bring the total proceeds this far to around £600m.
The sale remained subject to relevant approvals, including from customers and regulators.
Capita said revenue and the reported profit before tax for the SSS business for the year ended 31 December were £72m and £10m, respectively, and its gross assets were £63m as at 30 June.
Those figures also included a radio managed service contract that is included in the sale, and is due to terminate at the end of 2022.
The normalised revenue and EBITDA of the ongoing SSS business was about £58m and £8m per annum, respectively.
Capita said the senior management team and employees of SSS would be transferring with the business.
"We are pleased to have agreed the sale of our Secure Solutions and Services business to NEC Software Solutions UK following a competitive sale process," said Capita chief executive officer Jon Lewis.
"We announced our intention to sell SSS earlier this year as part of our ongoing strategy to simplify and strengthen Capita.
"The disposal is another step towards a more focused and sustainable business for the long term."
At 0818 BST, shares in Capita were down 1.14% at 50.38p.
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