(Reuters) - Outsourcer Capita (CPI.L) said on Friday it would sell its asset management services arm to Australian financial services firm Link Administration Holdings (LNK.AX) for 888 million pounds ($1.13 billion).
Capita, which specializes in providing IT-enabled business services to banks and investors, the National Health Service, retailers and utilities, has issued a series of profit warnings in the last year and said the deal would help it to raise cash and ease debt after being hurt by Britain’s vote to leave the European Union.
The company’s chief executive Andy Parker resigned in March after it reported a bigger than expected drop in profit and said it would take until 2018 before it could return to growth.
Reuters had earlier reported that Chicago-based private equity fund GTCR and European rival CVC Capital Partners CVC.UL were among a group of three buyout funds competing with Link Group, a provider of shareholder management services as well as analytics.
Reporting by Sanjeeban Sarkar in Bengaluru