Australia’s Link Group has agreed to take over Capita Asset Services (CAS), the UK-based asset management services business of outsourcer Capita, for £888m.
CAS administers around £600bn in assets and offers a range of services such as fund solutions, shareholder Solutions, corporate and private client solutions, as well as banking and debt solutions.
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”The acquisition is expected to be highly EPS accretive on a pro forma FY17 basis before the impact of efficiency benefits of at least £15 million per annum estimated to be delivered over the medium-term,” Link Group said in a statement.
Link Group managing director John McMurtrie said: “Whilst Link Group has been a market leader in Australia for a number of years and has had a presence in Europe, with the acquisition of CAS, we can say that Link Group is now a truly international company with expanded opportunities for further growth.”
The deal is expected to close on 31 December 2017, subject to regulatory nod.
Capita said that net proceeds from the sale will be used to “reduce indebtedness”, including its receivables financing facility.
Capita CEO Andy Parker said: “The disposal of CAS, alongside our other initiatives, makes Capita a leaner business with a stronger balance sheet, better placed to return to profitable, sustainable growth.”
