Last checked at 19 Jun 2020 14:59
Capita plc - Disposal of Eclipse Legal SystemsCapita plc - Disposal of Eclipse Legal Systems
PR Newswire
London, June 19
19 June 2020
This announcement contains inside information for the purposes of article 7 of EU Regulation 596/2014.
LEI no. CMIGEWPLHL4M7ZV0IZ88
CAPITA PLC
DISPOSAL OF ECLIPSE LEGAL SYSTEMS
Capita plc (“Capita”) today announces that it has agreed to sell 100% of the shares of Eclipse (Hardware) Limited trading as Eclipse Legal Systems (“Eclipse” or the “Company”) to Access UK Limited (“Access”).
Eclipse is a successful mid-market case, matter and practice management software provider operating in the UK legal market.
The total agreed consideration reflects an enterprise value of £56.5m on cash and debt free basis1 which represents a multiple of 14.1 times Eclipse’s adjusted2 earnings before interest, tax, depreciation and capitalised development costs, and is payable on completion, later this month.
The transaction is due to complete on 30 June 2020 and is not subject to any conditions. Proceeds from the transaction will be used to strengthen Capita’s balance sheet.
The statutory gross assets of Eclipse at 31 December 2019 were £20.5m3 and the statutory profit before tax for the year ended 31 December 2019 was £5.5m.
All of the Eclipse Senior Management Team will be transferring with the business.
Jon Lewis, Capita’s Chief Executive Officer, said “This disposal forms part of Capita’s strategy to simplify, strengthen and succeed. It will help us simplify by disposing of a standalone business, while the disposal proceeds will help strengthen Capita’s balance sheet. At the same time, our colleagues at Eclipse will benefit from a committed new owner, supporting further investment and growth.”
Pete O’Brien, Managing Director of Eclipse, said “We are excited about this transaction. With the support of Access, we are committed to delivering continued growth and investment in our products for our clients as well as working with Access to identify areas of potential revenue synergies”.
Capita is being advised by Harris Williams on the transaction.
For more information please contact:
Investor enquiriesStuart MorganTel: 07989 665484Email: IRteam@capita.co.uk
Media enquiriesCapita external communicationsTel: 0207 654 2399Email: media@capita.co.uk
Note
Gross proceeds of £58.4m in cash with net proceeds of £53.2m following the repayment of an intercompany balance.
Last 12 months to 30 April 2020 adjusted standalone EBITDAC.
Balance sheet adjustments since the statutory reporting date mean that gross assets relating to the transaction are £7.6m.
About Capita
Capita is a consulting, digital services and software business. Every day our 61,000 colleagues help millions of people, by delivering innovative solutions to transform and simplify the connections between businesses and customers, governments and citizens. We partner with clients and provide the insight and cutting-edge technologies that give time back, allowing them to focus on what they do best and making people’s lives easier and simpler. We operate in the UK, Europe, India and South Africa – and across six divisions: Customer Management; Government Services; People Solutions; Software; Specialist Services; and Technology Solutions. Capita is quoted on the London Stock Exchange (CPI.L). Further information can be found at: http://www.capita.com.