Capita Asset Services sold for nearly £900m

Link Administration Holdings is part of the Link Group (not the debt purchaser) and has announced this week the acquisition of Capita Asset Services, which offers a range of services including debt servicing and NPL due diligence, for a cash-free, debt-free consideration of £888m.

The transaction is subject to certain regulatory approvals and is expected complete by the end of December.

The net cash proceeds of the sale are intended to reduce Capita’s indebtedness, including its receivables financing facility.

These proceeds are estimated to be around £72m after transaction expenses are deducted, which includes a one-off pension contribution of £17m.

Capita Asset Services administers around £600bn of assets and in 2016 managed about £45bn in annual payments for customers.

Andy Parker, chief executive of Capita, said the acquisition has been an important part of the company’s plan to streamline.

Michael Carapiet, group chairman at Link, said: “Our management team has spent a significant amount of time assessing growth opportunities for Link Group in offshore markets and this acquisition materially expands Link Group’s footprint in the UK and Europe in business lines we understand well.”

Capita Asset Services operates in four major business segments:

• Banking and Debt Solutions: Loan processing, administration and work-out services to lenders and investors.
• Fund Solutions: Third-party administration and transfer agency services to asset managers and a variety of investment funds;
• Shareholder Solutions: Share registration, share plans services and treasury solutions to corporate clients;
• Corporate and Private Client Solutions: Trustee, administration and governance services to corporates and investors.