Capita agrees sale of Secure Solutions and Services business for £62m

NEC Software Solutions to purchase division as Capita continues to sell its assets

Capita has agreed to sell its Secure Solutions and Services (SSS) business to NEC Software Solutions for an expected £62m.

SSS provides software solutions and managed services to the emergency services and justice sectors and had revenues and profits of £72m and £10m respectively for 2020.

Capita has been selling off a number of its businesses recently to strengthen its balance sheet. Earlier this year, it agreed to sell a 51 per cent stake in training unit Axelos which followed the sale of its Educations Software Solutions business to Montagu Private Equity in a deal worth up to £400m.

The outsourcing giant said it "continues to make good progress" towards its target of £700m of proceeds from disposals in 2021 and the first half of 2022 and that the expected proceeds from this deal brings the total amount to "circa £600m".

"We are pleased to have agreed the sale of our Secure Solutions and Services business to NEC Software Solutions UK Limited following a competitive sale process," Jon Lewis, Capita's CEO, said.

"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 the same time, our SSS colleagues and clients will join an established industry organisation with plans to take the business onto the next stage of its development."

The sale of SSS is subject to relevant approvals, including customers and regulators.