FTSE 100-listed business process management provider Capita has acquired debt recovery specialists iQor Holdings UK and subsidiaries (iQor UK) from its US parent company, for an enterprise value of 42m pounds.
This comprises a cash consideration of £40.5m on a cash free, debt free basis and the assumption by Capita of a pension deficit of £1.5m net of tax relief.
iQor UK, which employs 450 people, provides outsourced debt collection services to the public and private sectors in the UK. The company made an operating profit on a pro forma basis for the year to December 31st of £6.5m on turnover of £21.8m.
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Paul Pindar, Chief Executive Officer of Capita, said: "The acquisition of iQor UK will enhance both the collections part of our customer management business and our wider debt management capability, providing us with in house 'late stage' debt recovery expertise alongside our existing early and final stage businesses."
Capita's share price was up 1.88% to 839p at 09:00 on Friday.
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