StockMarketWire.com - Digital services provider Capita said it remained on track to deliver revenue growth in 2021, for the first time in six years, led by performance in its specialist services division.

In August, the company will move to the new structure of two core divisions, Capita public service and Capita experience, and the third division holding our non-core assets, Capita portfolio.

Capita said it remains on track to deliver £50m of annualised cost savings from 2022 onwards, associated with this structure, as announced in March.

The company also Capita it had agreed to sell its 51% stake in Axelos Limited to PeopleCert International Limited in a deal that values the joint venture at £380.0 million, representing an 11.5x multiple on 2020 EBITDA of £33.1 million.

Capita would receive net cash proceeds of £172.5 million upon completion.

The sale proceeds would provide additional liquidity to strengthen Capita's balance sheet, meet upcoming debt maturities and support the ongoing implementation of its transformation plan,' the company said.

The sale of Capita's stake in Axelos is conditional on: the approval of Capita's shareholders, consents and waivers from certain creditors of Capita and clearance by the Cyprus Commission for the Protection of Competition.

These conditions are currently expected to be satisfied in July.





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