The Daily Telegraph

Capita sells asset management services arm to Link for £888m

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CAPITA has agreed to sell its asset management services arm to Australian financial services firm Link Administra­tion Holdings for £888m.

The outsourcin­g group, which specialise­s 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.

The company announced in March that its chief executive Andy Parker would step down later this year after it reported a bigger-than-expected drop in profit and said it would take until 2018 before it could return to growth. It has yet to name a new chief executive and Mr Parker is remaining at the helm until the autumn to help “facilitate a smooth transition”.

The asset management services arm is one of a number of divisions Capita announced it would sell last year as part of broader restructur­ing of the business.

CVC Capital Partners and rival US private equity firm GTCR were also in the auction to buy the asset management services business, according to Reuters reports earlier this month.

Shares in Capita, which was demoted from the FTSE 100 earlier this year, have fallen by more than a third in the past year. They closed down 1.1pc at 691.5p yesterday, before the sale was announced.

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