Capita sells contact center arm to Inspirit Capital
LONDON, UNITED KINGDOM — Capita has agreed to sell its private sector contact center business to United Kingdom investment firm Inspirit Capital, a move that sent the outsourcing giant’s shares soaring 15% to 277 pence (US$3.45-US$3.65).
According to a report from Morningstar, the deal, which values the business at a nominal £1 (US$1.32), marks a strategic shift as Capita seeks to streamline operations and focus on its core public service and technology-driven offerings.
Strategic sale to streamline operations
Capita, a London-based outsourcing and business services company, will retain £6.5 million (US$8.7 million) in cash within the business to support working capital.
The sale also includes potential contingent payments of up to £61.5 million (US$81.1 million) in 2027 and 2028, dependent on the business’ future financial performance (US$65.9 million) and cash availability (US$15.16 million).
The deal is expected to close before Capita releases its half-year results in August.
“As disclosed previously, we have seen tangible results from the improvements we have made to the business,” said Adolfo Hernandez, Capita Chief Executive, in a statement.
“However, we believe that the private sector contact centre [center] 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.” Hernandez added.
Capita described the disposal as an “important milestone” that will enable “significant” streamlining, accelerate margin expansion, and boost free cash flow generation.
The company also noted that the move would unlock material overhead reductions, helping it sharpen focus on public service, pension solutions and invest in technology capabilities to strengthen market differentiation.
Market impact and outsourcing implications
The sale highlights a growing trend in the outsourcing sector where large firms offload non-core operations to focus on high-growth areas, such as technology-enabled services.
“The sale of the private sector contact centre business further simplifies the group…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,” Hernandez emphasized.
Capita’s decision reflects a broader push for efficiency and specialization in business services, with investors rewarding moves that promise leaner operations and stronger cash flow.
The sale also positions Inspirit Capital to expand its portfolio by acquiring a business with proven operational improvements and growth potential.
In a sector increasingly shaped by digital transformation, such transactions are expected to accelerate, offering opportunities for both investors and service providers to unlock new value.
