Update on completion of offshore private sector BPO operations sale
Date: 31 Dec 2015
Serco Group plc (‘Serco’ or ‘the Group’), the international service company, announced on 16 September 2015 that it had agreed the sale of its offshore private sector Business Process Outsourcing (‘BPO’) operations (the ‘Offshore BPO Operations’). The transaction was expected to complete around the end of 2015, subject to customary closing conditions and regulatory approvals. Completion was anticipated to occur in three parts: one covering the majority of the Offshore BPO Operations, and two smaller but separate transactions related to some operations in the Middle East. The overall sale had an agreed gross value of approximately £250m before transaction costs and deferred consideration fair value adjustments together totalling approximately £15m, and before other relevant movements in closing balances.
Serco is pleased to confirm that completion has now occurred, effective 31 December 2015, for the majority of the Offshore BPO Operations. Reflecting movements in net asset balances since the agreed valuation date, and subject to any final adjustments up to today’s completion date and for currency translation, the resulting reduction in Serco’s net debt is expected to be approximately £200m. The remaining net cash consideration of approximately £10m is due to be received by Serco upon the completion of the Middle East transactions.
Serco’s trading update issued on 7 December 2015 included assumptions that the sale of the Offshore BPO Operations would complete as described above. There is therefore no change to the expected trading outcome for the 2015 financial year or the outlook for 2016 as described in that recent trading update.
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For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 1256 386 227
Marcus De Ville, Head of Media Relations T +44 (0) 1256 386 226