Capita has agreed a deal to sell its private sector contact centre business to Inspirit Capital for £1.

The business outsourcing company said the move would continue the strategic simplification of the group and allow it to significantly streamline its operations and investments.

Capita described the transaction, valued at £1 but with £6.5m cash retained in the business upon completion for normal working capital purposes, as “value accretive” and said it would unlock a material overhead reduction as it removes “complexity” from its operations.

The deal includes a potential contingent consideration payable to Capita up to a cap of £61.5m, expected to be paid in 2027 and 2028, with £50m based on future financial performance of the disposed business, and £11.5m based on cash availability.

“We are extremely pleased to have reached agreement with Inspirit Capital for the sale of our private sector contact centre business as we continue Capita’s strategic journey,” Capita CEO, Adolfo Hernandez, said. “As disclosed previously, we have seen tangible results from the improvements we have made to the business.

“However, we believe that the private sector contact centre business is best placed to succeed for the long-term under new ownership and we’re pleased to have found a partner to deliver incremental benefits for both parties with the onward progress of the business.

“In Inspirit Capital we have found a new owner of the business with the potential to enable that long-term success.”

Founding partner at Inspirit Capital, Will Stamp, added: “We believe the tenure and strength of Capita’s private sector contact centre business’ 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.”

Capita is expecting the deal to complete before its H1 results in August, subject to regulatory approval.

---