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Capita Shares Surge Following Sale of Software Business
In a significant market movement, Capita witnessed a remarkable surge of nearly 23% in its shares during early trading on Tuesday. This spike came on the back of an announcement by the British outsourcing company regarding the sale of its standalone software division, Capita One, to a subsidiary of MRI Software. The transaction is valued at 200 million pounds, translating to approximately $256 million.
Financial Details and Strategic Move
The agreement outlines Capita's expectation of receiving a cash dividend amounting to 4.8 million pounds from Capita One preceding the official sale. This strategic decision follows the company's recent evaluation of its non-core assets, initiated last month.
Business Profile and Transaction Expectations
Capita One specializes in providing software solutions across various sectors in the UK public domain, whereas MRI Software focuses on the real estate software sector. Through this sale, Capita anticipates gross cash proceeds close to 207 million pounds, with the transaction slated to conclude towards the end of August.
Market Reaction and Share Performance
The announcement propelled Capita's stock to its highest point in over four months, marking it as the top percentage gainer on the FTSE Small Cap index. The exchange rate noted for the valuation is $1 equivalent to 0.7807 pounds.
