Capita acquires debt recovery specialist iQor

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.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

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.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.