London-based business tech consultancy Capita PLC announced it has acquired two specialist insurance companies 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 in areas such as underwriting support, claims and customer financing.
CMA provides regulatory approval and oversight for live and run-off syndicates in the Lloyd’s insurance market.
Revenue and profit before tax for the specialty lines business for the year ended 31 December 2020 were £26m and £5m respectively. Those numbers include a contract that is included in the sale and is scheduled to end in 2022. Revenue and pre-tax profit of specialty insurance business excluding this contract were £20m and £3m respectively.
The CCIS and CMA leadership team and staff will remain with the companies as they pass into Marcos ownership.
Deloitte FIG Corporate Finance acted as exclusive financial advisor 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 businesses, Capita Public Service and Capita Experience.
Jon Lewis, Capita’s Chief Executive Officer, said: “This is the seventh exit we have announced in the last 12 months. I am very happy about this progress.
“Today is another step towards a more long-term focused and sustainable business. Further progress on the divestitures will be announced as appropriate.”
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