30 June 2015
Capita to acquire
Vertex Mortgage Services Limited
Capita plc (‘Capita’) has today announced that it is acquiring
Vertex Mortgage Services Limited (‘Vertex MS’) for £35 million on a
cash free, debt free basis, subject to approval by the Financial
Conduct Authority.
The acquisition of Vertex MS further strengthens Capita’s
growing position within the third party mortgage administration
market. Building on its commercial mortgage servicing activities,
last year Capita added retail mortgage administration to its
capabilities following the purchase of Crown Mortgage Services
Limited.
Capita already has a strong working relationship with Vertex MS
that specialises in providing mortgage processing and
administration software solutions to major retailers and high
street banks.
Vertex MS employs 340 people and had an annual turnover in the
financial year ending 31 March 2015
of £22.9 million with pro forma EBITA of £1.3 million. The company
is forecasting pro forma EBITA of £2.7 million on turnover of £33.1
million in its current financial year to 31
March 2016. Due to synergies and growth expectations, we
would expect the acquisition to achieve our target return on
investment of 15 per cent in 2017.
The mortgages market is facing significant regulatory and
business challenges. Currently just five per cent of the mortgage
servicing market is outsourced[1]. Capita has identified huge
potential in the UK BPO mortgage market, which is estimated to grow
to £400 million in 2018[2].
Capita plc Chief Executive Andy
Parker said: “As part of our strategy to support the
financial services industry, Capita’s ambition is to become the
mortgage processing partner of choice for existing mortgage
providers and challenger banks.
“The acquisition of Vertex MS is another key step towards
achieving this goal. This is a market facing continuous regulatory
change and changing customer behaviours, and with Capita’s breadth
of services and expertise we are well placed to help organisations
with these challenges. This market therefore offers significant
growth potential for Capita.”
Capita brings extra support and skills to grow Vertex MS’s
market-leading software, maintaining its position at the forefront
of the market. The insight-driven software ensures the right
information is presented at the right time, in the right way, to
help make mortgage applications as simple as possible, enhancing
the customer experience.
Andy Parker added: “Coupling
Vertex MS’s specialist software with Capita’s experience in
business process and customer service transformation will position
us uniquely in the market. The acquisition will allow us to deliver
real value for mortgage providers, respond to the needs of existing
providers and new entrants, and enhance our ability to service
large-scale clients.”
The acquisition includes subsidiary companies: Vertex Financial
Services Limited and MS Canada Limited, providers of mortgage
software in the UK and Canada; and
Jessop Fund Managers Limited, providers of unit trust and pension
administration services in the UK.
[1] Deloitte 2015 Financial Services M&A selected
opportunities report
[2] Source: Nelson Hall
-Ends-
For further information:
Capita plc
Tel: 020 7799 1525
Andy Parker, Chief Executive
Officer
Shona Nichols, Corporate
Communications Director
Media enquiries only:
Capita press office
Bobby Mayamey
Tel: 020 7654 2282 or 020 7654 2399 (out of hours)
Email: bobby.mayamey@capita.co.uk
Twitter: @CapitaPress
Note to editors
Capita plc is the UK’s leading provider of customer and
business process management (BPM) and integrated professional
support service solutions. With 68,000 people at over 400 sites,
including 80 business centres across the UK, Europe, India
and South Africa, the Group uses
its expertise, infrastructure and scale benefits to transform its
clients’ services, driving down costs and adding value. Capita is
quoted on the London Stock Exchange (CPI.L), and is a constituent
of the FTSE 100 with 2014 revenue of £4.4bn. Further information on
Capita plc can be found at: http://www.capita.co.uk/
About Vertex Mortgage Services
Limited
Vertex Mortgage Services Limited is part of the Vertex Group
Limited which includes Vertex Financial Services Ltd, MS Canada Ltd
and Jessop Fund Managers Ltd. Vertex Mortgage Services Limited a
provider of mortgage origination and servicing solutions in the UK
and Canada as well as unit trust
and pension administration services in the UK.