UK’s Capita surges about 23% on sale of software business

UK’s Capita surges about 23% on sale of software business

(Reuters) -Shares in Capita jumped nearly 23% in early trading on Tuesday after the British outsourcing firm agreed to sell its standalone software business Capita One to a unit of MRI Software in a deal worth 200 million pounds ($256 million).

Capita said it expects to get a cash dividend of 4.8 million pounds from Capita One before the sale, which comes after the company evaluated its non-core assets since last month.

Capita One provides software solutions across the UK public sector, while MRI Software is in the real estate software business.

Capita expects potential gross cash proceeds of about 207 million pounds from the sale, which is expected to be completed towards the end of August.

The company’s stock hit its highest level in more than four months and was the top percentage gainer on the FTSE Small Cap index. ($1 = 0.7807 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich and Savio D’Souza)