Capita plc: Capita acquires iQor UK
28 February 2013
Capita acquires debt recovery specialists, iQor UK
Capita plc (`Capita') announces today that it has acquired iQor Holdings UK Ltd and subsidiaries (`iQor UK'), from its US parent company, for an enterprise value of £42m, comprising 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 provides outsourced debt collection services to both the public and private sectors in the UK, helping companies and organisations to manage high risk customers and ensure revenue collection. The company made an operating profit on a pro forma basis for the year to 31 December 2012 of £6.5m on turnover of £21.8m.
Commenting on the deal, Paul Pindar, chief executive of Capita plc 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. iQor UK provides services to around 20 public and private sector organisations including well known high street brands, as well as Capita itself, to which it provides support on the BBC TV licensing contract."
Norm Merritt, president and CEO of iQor Holdings Inc. said: "Our plan to sell our UK debt collections subsidiary demonstrates our commitment to concentrate our strategic focus and investments in our growing North American business and expanding our analytics capabilities and global footprint in high-demand nearshore and offshore locations. While we are very proud of the accomplishments and contributions of our team in the UK, we feel it is in the best interests of our employees and UK clients to be part of a strong, UK-based parent like Capita."
iQor UK employs 450 people in Preston.
For further information:
Tel: 020 7799 1525
Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director
Capita press office
Tel: 0207 654 2152 or 020 7654 2399 (out of hours)
Notes to editors
Capita plc is the UK's leading provider of BPO and integrated professional support service solutions. With 46,500 people at more than 350 sites, including 68 specialist business centres across Europe and India, the Group uses its expertise, infrastructure and scale benefits to transform its clients' services, driving down costs and adding value. Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE 100 with 2011 turnover of £2.9 billion and profit before tax of £385 million. Further information on Capita plc can be found at: http://www.capita.co.uk
-0- Mar/01/2013 08:49 GMT