Capita completes sale of two businesses as it looks to strengthen balance sheet

Capita received proceeds of £69m at completion

Capita has completed the sale of two of its businesses as it looks to strengthen its balance sheet and reduce debt.

The professional services giant announced in August it agreed to sell its Real Estate and Infrastructure (‘REI') and GL Hearn (‘GLH') businesses to WSP.

It confirmed on Thursday the deal has completed, with Capita receiving proceeds of £69m at completion.

"The proceeds, net of transaction costs, will be used to strengthen the balance sheet and reduce debt," the company said in a statement.

The senior management teams and employees of REI and GLH will remain with their businesses as they transfer to the ownership of WSP.

This comes after Capita agreed to sell Pay360 to Access PaySuite in a £150m deal on a cash-free and debt-free basis.

Capita CEO Jon Lewis said selling the company is part of its strategy to "simplify and strengthen" Capita as well as being an opportunity for Pay360 to reach its "full potential".

He added: "We are pleased to have agreed the sale of Pay360 to Access.

"The sale is a great opportunity for the new owners to help Pay360 realise its full potential, and our colleagues at Pay360 will also benefit from the focus that this change of ownership will bring."

Capita is selling off businesses as it looks to strengthen the balance sheet and focus on its two core divisions, Capita Public Service and Capita Experience.

Secure Solutions and Services, AMT Sybex, two Specialty Insurance businesses, and Trustmarque are among business that were also sold this year.