Mitie Regulatory News (MTO)

23 August 2021

Mitie Group plc

LEI number: 213800MTCLTKEHWZMJ03

Mitie sells Document Management business to

Swiss Post Solutions for £40m

Mitie Group plc (Mitie or the Group) has today announced that it has entered into an agreement to sell its Document Management business to Swiss Post Solutions Limited (SPS) for £40m on a debt-free cash-free basis. Mitie Document Management delivered revenue of £48m and an EBITDA of £4.2m for the twelve months to 31 March 2021.

The deal is conditional on the completion of a TUPE consultation process with employees of Mitie Document Management and is expected to complete by the end of September 2021.

Headquartered in Zurich with operations across the world, SPS is a leading outsourcing provider of document management services, is at the forefront of digital transformation in document management and information processing, and is looking to grow its Document Logistics and Business Process Services business across the UK and Ireland.

Following the completion of the transaction, document management services will remain an important part of Mitie's integrated facilities management (IFM) service offering to our clients, under a preferred supplier partnership with SPS, and the additional scale and expertise of SPS will enhance the range of document management services offered to Mitie's IFM clients.

The sale of Mitie's Document Management business continues the Group's strategy of realising value from non-core businesses whilst allowing reinvestment (such as the DAEL Telecom acquisition made earlier this month) in higher growth opportunities, underpinned by our 'Science of Service' technology in a post-COVID world.

Phil Bentley, Chief Executive Officer, Mitie Group, said:

"By joining forces with Swiss Post Solutions, the Document Management business will continue to grow and flourish, allowing Mitie to focus on our technology-led, Science of Service strategy in our core divisions.

"I would like to thank the Document Management team for their contribution to the Group, and we look forward to working with SPS to bring new innovation to our existing and future IFM clients."

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For further information

About Mitie

Founded in 1987, Mitie's job is to look after places where Britain works and is the leading facilities management company in the UK. We offer a range of services to Central Government and Defence customers; Communities (Healthcare, Education and Local Authorities); and Technical Services (Engineering Services, Energy, Water and Real Estate Services) and Business Services (Security, Cleaning and Office Services) to Private Sector clients in Financial Services, Manufacturing, Transport, Retail and Telecoms and increasingly to the public sector. Finally, our Specialist Services (Care & Custody, Landscapes and Waste Management) division serves both the public and private sectors in these niche businesses. 

Mitie acquired Interserve's FM business in December 2020 and now employs 75,000 people. We are the champion of the 'Front-Line Heroes' who have kept Britain working during the COVID-19 pandemic. We take care of our customers' people and buildings, through the 'Science of Service', delivering essential services and deploying industry leading technology to create safe and effective workspaces. 

The business continues to execute its technology-led strategy and in the past six months has received multiple awards. 

Find out more at www.mitie.com.

About Swiss Post Solutions

Swiss Post Solutions (SPS) is a leading outsourcing provider for business processes solutions and innovative services in document management. A strong international client base relies on SPS' ability to envision, design and build end-to-end solutions and to be its trusted advisor for the key value drivers in BPO: location strategy, process optimization and technology, such as intelligent automation. Part of the Swiss Post Group headquartered in Bern, Switzerland, SPS' 7300 employees and specialized partners span the full range of the industry with focus on banking, insurance, telecommunications and healthcare, addressing customer needs in more than 20 countries. We connect the physical and digital worlds.

For further information, please go to www.swisspostsolutions.com