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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
MF
-
Trump wants to colonise Mars – will it happen?Donald Trump wants to plant the US flag on Mars. Could humans really live there?
-
Klarna postpones US IPO as Trump's tariffs rattle marketsBuy-now-pay-later lender Klarna has postponed its US initial public offering owing to the market turbulence. It is not alone, says Matthew Partridge
