British outsourcing provider Capita has reached an agreement to sell its private sector contact centre operations. The buyer is investment firm Inspirit Capital. With this move, Capita aims to focus more strongly on its activities in the public sector and pension administration.

 

With the sale of the contact center activities, the British outsourcing company continues the simplification of the group. Capita intends to focus more strongly on activities involving more complex, distinctive middle and back-office services, particularly in the public service and pension solutions markets.

Takeover price 1 pound

British private equity fund Inspirit Capital is acquiring the contact center operations for a symbolic sum of £1, while £6,5 million in cash will remain in the company upon completion for working capital. Additionally, Capita may receive up to a maximum of £61,5 million in additional compensation in 2027 and 2028, largely dependent on the future financial performance of the divested business unit and available cash resources. An agreement has also been made regarding value sharing if Inspirit resells the company within five years.

Adjusted figures

The deal includes a business unit with adjusted revenue of £398,1 million in 2025 and an adjusted operating loss of £34,9 million, including overhead allocations. According to Capita, the figures differ from the previously reported contact center activities, primarily because certain public contracts remain outside the transaction and because group costs have been allocated differently.

Capita has not released figures regarding the number of employees. Until the announcement of the deal, approximately 34.000 people worked at the company.

Capita states that in recent years it has modernized the foundation of its primarily front-office-oriented private contact center activities and addressed structural problems.

Disappointing results

In 2021, Capita won, among other things, a high-profile HMRC contract for voice analytics on 30 million calls per year. Over the past year, Capita faced a decline in revenue and loss-making contact center activities.

According to the company, the time has now come to further grow these activities under a different owner. For Capita itself, the sale should lead to further simplification of the organization, reduced overhead, and improved profitability. Capita also announced annual savings of approximately £40 million in 2026 and 2027.

Capita explicitly positions itself as an AI-led business processing outsourcer. On June 17, 2026, the group will provide investors with a further update on market opportunities, financial targets, and capital allocation.

Building on the initiated transformation

For Inspirit Capital, the acquisition revolves around the contact center company's position in the market and the quality of existing customer relationships, including SamsungAccording to founding partner Will Stamp, the company offers a strong platform to leverage new technology and growth opportunities in the sector. Inspirit sees particular opportunities to build on the transformation that has already been set in motion under Capita.

The completion of the transaction is expected before the publication of Capita's half-year results in August 2026, subject to regulatory approval.

(Capita, Ziptone)

merger/acquisition, Human Resources