Capita: £207m Software Division Sale to MRI Software Approved
Deal News | Mar 19, 2025 | Business Cloud
In a significant move, Capita plc has successfully sold its software division, Capita One, to U.S.-based MRI Software for £207 million, a sale which has now received clearance from the UK's Competition and Markets Authority (CMA). The deal, which closed in September 2024, underscores MRI Software's expansion into the UK public sector, enhancing its client base with solutions that complement Capita One's offerings in education, tax, benefits administration, and housing. This strategic acquisition is seen as a 10x EBITDA multiple based on Capita One's £21 million EBITDA in 2023, highlighting a lucrative exit for Capita plc. Patrick Ghilani, CEO of MRI Software, and Jon Peart, Managing Director of Capita One, express optimism about the integration and the value it brings to clients. The acquisition is poised to enable local authorities and social housing providers to streamline compliance and operational processes, benefiting from MRI's expertise in real estate solutions.
Sectors
- Technology
- Real Estate
- Public Sector
Geography
- United Kingdom – Capita plc is headquartered in London and the transaction involves the UK public sector as a key element of the business strategy.
- United States – MRI Software, the acquiring company, is based in the United States.
Industry
- Technology – The article involves the sale of a software business, indicating significant relevance to the technology industry.
- Real Estate – MRI Software's core business includes real estate solutions, and the acquisition expands their offerings in this sector.
- Public Sector – The acquisition involves solutions aimed at the public sector, particularly in education, tax, and housing.
Financials
- £207 million – Deal price for the acquisition of Capita's software business by MRI Software.
- 10x – The sale represents a 10x multiple on the 2023 EBITDA of Capita One, valued at £21 million.
- £21 million – Capita One's EBITDA for 2023.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Capita plc | Selling Company | Company | A London-headquartered outsourcing giant that sold its software division, Capita One. |
| MRI Software | Bidding Company | Company | A U.S.-based company that acquired Capita's software division, expanding its reach in the UK public sector. |
| Competition and Markets Authority | Government | Government | The UK regulatory body that approved the acquisition of Capita One by MRI Software. |
| Patrick Ghilani | CEO | Person | CEO of MRI Software, who commented on the strategic benefits of the acquisition. |
| Jon Peart | Managing Director | Person | Managing Director of Capita One, who acknowledged the benefits and future opportunities of the acquisition. |