London business tech consultancy selling two specialist businesses

London based business tech consultancy Capita PLC announced that it has acquired two specialist insurance businesses from Marco Capital Holdings Limited for an undisclosed sum.

The sale comprises two businesses: Capita Commercial Insurance Services Limited (CCIS); and Capita Managing Agency Limited (CMA).

CCIS provides outsourced business processes for the insurance industry across areas including underwriting support, claims and client finance.

CMA provides regulatory approval and oversight to live and run-off syndicates in the Lloyd’s insurance market.

The revenue and profit before tax for the speciality insurance businesses for the year ended December 31 2020 were £26m and £5m respectively. These figures include a contract that is included in the sale and which is due to end in 2022. The revenue and profit before tax of the speciality insurance business excluding this contract were £20m and £3m respectively.

The senior management team and employees of CCIS and CMA will remain with the businesses as they transfer to Marco’s ownership.

Deloitte FIG Corporate Finance acted as the exclusive financial adviser to Capita. Capita previously announced its intention to sell a number of non-core businesses to strengthen the balance sheet and focus on its two core divisions, Capita Public Service and Capita Experience.

Jon Lewis, Capita’s chief executive officer, said: “This is the seventh exit we have announced in the past 12 months. I am really pleased with this progress.

“Today is another step towards a more focused and sustainable business for the long term. Further progress on disposals will be announced as and when appropriate.”