Capita has agreed to sell its private sector contact centre arm to private equity investor Inspirit Capital to focus on its pensions and public sector businesses.

The sale was made for a nominal sum of £1, with £6.5m of cash retained in the business upon completion for ‘normal working capital purposes’.

However, the deal included potential contingent consideration payable to Capita of up to £61.5m.

This was expected to be paid in 2027 and 2028, with £50m based on future financial performance and £11.5m based on cash availability.

Capita said the transaction would allow it to “significantly streamline” its operations and investments.

It is expected to deliver annualised savings of around £40m across 2026 and 2027, at an associated cash cost of £20m.

Completion of the deal is anticipated to take place before the group’s half-year results in August, subject to regulatory approval.

“We are extremely pleased to have reached agreement with Inspirit Capital for the sale of our private sector contact centre business as we continue Capita’s strategic journey,” commented Capita chief executive officer, Adolfo Hernandez.

“As disclosed previously, we have seen tangible results from the improvements we have made to the business.

“However, we believe that the private sector contact centre business is best placed to succeed for the long-term under new ownership and we’re pleased to have found a partner to deliver incremental benefits for both parties with the onward progress of the business.

“The sale of the private sector contact centre business further simplifies the group and will enhance our margin expansion.

“It enables us to focus on public service and pension solutions and invest in our technology capabilities to improve our differentiation.

“This will enhance value creation in markets where technology-enabled transformation is accelerating and where Capita has deep expertise and strong demand.”

Inspirit Capital founding partner, Will Stamp, added: “Inspirit is pleased to announce the pending acquisition of Capita's private sector contact centre business.

“We believe the tenure and strength of Capita's private sector contact centre business's customer relationships give the business a leading position in the industry and a unique platform from which to exploit new technology and opportunities in the sector.

“It is an exciting time for the business, with the impressive transformation Capita has started well underway, and the chance to capitalise on its strengths under new ownership.”

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