Greater Manchester FinTech Pay360 has been sold by Capita plc in a £150 million deal.

Access PaySuite, a division of technology giant The Access Group, is the acquirer in a deal which Capita said represents a 14.3x multiple on the company’s 2021 EBITDA of £10.5m.

The transaction is conditional on the approval of Capita’s shareholders and clearance from the Financial Conduct Authority. Capita said these conditions are expected to be satisfied in late Q4 2022.

Pay360, headquartered in Oldham, has 2,500 customers across the public and private sectors. 

It offers gateway and acquiring services, as well as payment solutions across the payments value chain. 

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In 2021, the business processed £8.6 billion in transaction value across 142m transactions.

The gross assets of Pay360 at 30th June 2022 were £63.6m. For the year to 31st December 2021 it generated revenue of £45.8m, EBITDA of £10.5m and profit before tax of £7.1m. 

For H1 2022, Pay360 generated revenue of £27.3m, EBITDA of £5.7m and profit before tax of £3.1m. The Pay360 senior management team will be transferring with the business.

“We are pleased to have agreed the sale of Pay360 to Access,” said Capita CEO Jon Lewis. “We announced our intention to sell Pay360 during our half year results, as part of our strategy to simplify and strengthen Capita. 

“The sale is a great opportunity for the new owners to help Pay360 realise its full potential, and our colleagues at Pay360 will also benefit from the focus that this change of ownership will bring. 

“Capita will utilise the cash proceeds of the sale to benefit our digital offerings for clients and further reduce net debt. The Pay360 senior management team and employees will remain with the business as they transfer to new ownership.”

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