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Capita to sell education software solutions business in deal worth up to £400m
StockMarketWire.com
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Digital services business Capita said it had agreed to sell its education software solutions business to Tiger UK Bidco Limited, a newly formed company established by funds advised by Montagu Private Equity, in a deal worth up to £400m.
Under the deal, Montagu would assume liabilities such as working capital and debt worth £57m. Montagu would pay £298m on completion, expected early in 2021.
Montagu had also agreed to invest in ParentPay, a provider of education technology.
Following successful completion of both investments, the education software solutions business would become part of the ParentPay.
An additional sum of £45m would subsequently be payable to Capita once Montagu's agreed investment in ParentPay had achieved regulatory approvals, the company said.
'Proceeds from the transaction will be used to strengthen Capita's balance sheet and £50m will be used to replace the remaining value of an asset-backed financing agreement, relating to intellectual property developed by ESS, which was entered into in 2012 with the Capita pension scheme, Capita added.
At 9:43am: (LON:CPI) Capita PLC share price was 0p at 39.17p
Story provided by StockMarketWire.com
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