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Outsourcing business Capita has sold its travel and events businesses Agiito and Evolvi to Manchester-based Clarity Travel for an enterprise value of £36.5m on a cash free, debt free basis.
Clarity is taking on working capital and debt liabilities as part of the deal but Capita said in a statement to the stock market this morning that it expects to receive cash proceeds of £16m, of which £8m is payable on completion and £8m is payable 12 months following completion.
The senior management teams and employees will remain with their businesses as they transfer to Clarity, the business travel and events division of the Portman Travel Group, which acquired Clarity from the Co-operative Group in 2016.
Clarity said on its LinkedIn feed this morning: “This announcement sees years of expertise and experience combine in the sector alongside enviable reputations for service and driving value in corporate travel programmes.
“The new combined business will benefit from a unique, cutting-edge technology platform with proprietary technologies in Online Booking, Meetings & Events and Rail.”
The reported revenue and profit before tax of the combined businesses for the year to 31 December 2022 were £31m and £4m respectively, and gross assets were £76m at 30 June 2023.
Capita is underway with a divestment programme to shed software, enforcement and PageOne businesses in July. The sale also marks the penultimate transaction before the completion of Capita’s non-core disposals programme.
Jon Lewis, Capita’s Chief Executive Officer, said: “We are pleased to have agreed the sale of our travel and events businesses to Clarity, following a competitive sale process.
“The transaction offers significant growth opportunities for the businesses, their clients and colleagues.
“It also marks another significant step towards reducing Capita’s debt, as we continue to simplify and strengthen the organisation, and become a more successful business for the long term.”
Derby-based Agiito, formerly known as Capita Travel and Events and NYS, is a creative led events business that describes its services as wide ranging as “sourcing a symphonic orchestra to an unforgettable event experience on the African plains, we’re a team of creative minds, innovators and problem solvers.”
Kent-based Evolvi is the internet based self-booking rail tool created specifically for Travel Management Companies.
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