Capita has agreed to sell its private sector contact centre business to Inspirit Capital for the nominal sum of £1, as the outsourcing group continues its push to simplify operations and focus on public services and pensions.
The business being sold generated adjusted revenue of £398.1m in 2025 but ran at an adjusted operating loss of £34.9m, including overhead allocations.
Capita shares were over 10% higher on Thursday as investors reacted to the move, which will help streamline the business and reduce costs.
While the headline price is £1, Capita could receive up to £61.5m in contingent consideration, payable in 2027 and 2028, depending on the performance of the divested business and cash availability under the new owner.
The deal is expected to unlock around £40m in annualised savings across 2026 and 2027, at a cash cost of £20m to achieve. Capita says this should deliver roughly 200 basis points of improvement in adjusted operating margin by 2027, against a current margin of 5.2%.
“The sale of the private sector contact centre business further simplifies the Group and will enhance our margin expansion,” said Adolfo Hernandez, Chief Executive Officer, Capita.
“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.”