Capita exits private contact centre unit for £1

The sale to Inspirit Capital is set to drive savings and includes up to £61.5m in contingent payments

Capita has agreed to sell its private sector contact centre business to Inspirit Capital as part of its ongoing strategy to simplify the group and focus on higher-margin services.

The deal will see the business sold for £1, with £6.5m of cash retained within the unit for working capital purposes.

Capita could receive up to £61.5m in contingent consideration, depending on the future financial performance of the business and cash availability, with payments expected in 2027 and 2028.

The division being sold generated £398.1m in adjusted revenue in 2025 and recorded an adjusted operating loss of £34.9m, including overhead allocations.

Capita said the move is aimed at simplifying its operations and allowing it to focus on its core public service and pension solutions businesses, while increasing investment in technology-led transformation.

As part of the wider simplification programme, Capita expects to deliver around £40m in annualised cost savings across 2026 and 2027, at an estimated implementation cost of £20m.

The group also expects to improve its adjusted operating margin by around 200 basis points by 2027, compared with 5.2 per cent in 2025.

Completion of the transaction is expected before the group’s H1 results in August, subject to regulatory approval.

“The sale of the private sector contact centre business further simplifies the Group and will enhance our margin expansion,” said Adolfo Hernandez, CEO of Capita.

“It enables us to focus on public service and pension solutions and invest in our technology capabilities to improve our differentiation.

“This will enhance value creation in markets where technology-enabled transformation is accelerating and where Capita has deep expertise and strong demand.”

Will Stamp, founding partner at Inspirit Capital, added: “We believe the tenure and strength of Capita’s private sector contact centre business’s customer relationships give the business a leading position in the industry and a unique platform from which to exploit new technology and opportunities in the sector.

“It is an exciting time for the business, with the impressive transformation Capita has started well underway and the chance to capitalise on its strengths under new ownership.”

This announcement comes as Capita has increased its public sector footprint over the past 12 months.

Earlier this month, the organisation secured an agreement to deliver tech-focused back-office services for public servants across the Department for Work and Pensions, the Ministry of Justice, the Home Office and the Department for Environment, Food and Rural Affairs.

The deal, set to run for seven years, with the option of three one-year extensions, was valued at £370m over the potential ten-year term.

In January, it won a £9m contract with Kent County Council to deliver contact centre services supporting 1.6 million residents.

In November, it agreed a three-year extension with Hart District Council, Havant Borough Council, South Oxfordshire District Council and Vale of White Horse District Council.

In May, its Local Public Service (LPS) division signed a four-year mandate with SP Energy Networks (SPEN), part of ScottishPower.