REG-Capita PLC: Capita acquires iQor UK

Fri Mar 1, 2013 3:48am EST

* Reuters is not responsible for the content in this press release.

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.

                                    -ends-                                     

For further information:

Capita plc

Tel: 020 7799 1525

Paul Pindar, Chief Executive

Shona Nichols, Corporate Communications Director

 

Media enquiries

Capita press office

Caroline Mooney

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



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