Last checked at 
(Alliance News) - Capital PLC on Monday said it has agreed to sell Axelos Ltd, its joint venture with the UK government, to PeopleCert International Ltd.
The deal values Axelos at GBP380.0 million on a cash-free, debt-free basis. Capita owns 51% of the business, and will receive proceeds of GBP172.5 million from the sale plus an GBP11.1 million dividend, for a total of GBP183.6 million.
Shares in Capita were up 6.8% to 40.20 pence.
The UK government, which owns the remaining 49% of Axelos, also will sell its stake.
London-based outsourcing company Capita said it will use the proceeds to strengthen its balance sheet, meet upcoming debt repayments and support its transformation plan.
Axelos, which owns the rights to project management techniques developed by the UK government, was set up in 2013.
PeopleCert is a company providing corporate training and exams. New York-based private equity firm FTV Capital Management will take a stake in PeopleCert as part of the deal.
Capita had announced in February that it was considering selling Axelos. It said it reached the deal with PeopleCert after a competitive auction.
"The sale will help us simplify Capita by disposing of a non-core business, while the proceeds will help strengthen Capita's balance sheet, as we build towards a more focused, sustainable business for the long term," Chief Executive Jon Lewis said.
Separately on Monday, Capita said that trading has improved in the first half of 2021, in line with its expectations. First-half revenue is expected to be flat year-on-year, while full-year revenue will grow for the first time in six years.
In 2020, the company made first-half revenue of GBP1.68 billion and full-year revenue of GBP3.32 billion.
The firm is in the process of cutting costs and selling non-core assets as part of a corporate restructuring. In February, it announced the sale of Education Software Solutions for up to GBP343.5 million. Further disposals are "progressing well", the trading update said.
By Ivan Edwards; ivanedwards@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
