UK outsourcing and professional services group Capita has agreed to sell its payments division to Access PaySuite, a division of UK software company Access Group, in a deal worth £150 million.

The sale of its Pay360 business follows a strategic review of the division and is part of Capita’s strategy “to build a more focused, sustainable business for the long term”, the company said.

Pay360 is regulated by the Financial Conduct Authority and has roughly 2,500 customers across the public and private sectors. It provides gateway and acquiring services along with payment solutions, and recently expanded into payment facilitation with the launch of its Evolve platform.

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The business processed 142 million transactions in 2021 worth a total of £8.6 billion.

Including cash and debt items, Capita expects to receive gross proceeds of £156m from the disposal. It said the sale will strengthen its balance sheet by reducing debt and providing additional liquidity.

“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 chief executive Jon Lewis said.