Capita sells travel units to Clarity for $20.3M
LONDON, UNITED KINGDOM — Outsourcing giant Capita has agreed to sell its travel and events businesses, Agiito and Evolvi, to Clarity Travel for £16 million ($20.3 million) in cash.
The deal is worth £36.5 million ($46.4 million) when considering the working capital and debt liabilities that Clarity is assuming as part of the transaction.
Agiito assists companies with employee travel management, while Evolvi is a rail booking system used by travel businesses. Clarity is a corporate travel agency.
Capita will receive £8 million ($10.2 million) in cash upon completion of the deal and an additional £8 million ($10.2 million) a year later. Agiito and Evolvi’s senior management and staff will be transferred to Clarity.
The sale is the penultimate transaction before the completion of a program of sell-offs that Jon Lewis, Capita’s outgoing CEO, has been overseeing to turn the business around.
Lewis said the sale “marks another significant step towards reducing Capita’s debt as we continue to simplify and strengthen the [organization] and become a more successful business for the long term.”
Adolfo Hernandez, a senior executive at Amazon Web Services and a technology sector veteran, will replace Lewis as CEO towards the end of the year.
Capita is the largest business process outsourcing (BPO) and professional services company in the United Kingdom. The company employs about 52,000 people in Britain, Europe, India, and South Africa.
