Outsourcing firm Serco has announced the sale of its Business Process Outsourcing (BPO) operation to private equity firm Blackstone for a total £250m.
The company, which bought the business from Blackstone in 2011 for $630m, said the proceeds from the deal will be used to reduce its net debt.
Serco, which is taking steps to recover from a string of contract problems and scandals, said in March that it planned to refocus the group on government service contracts and away from the private sector.
Rupert Soames, group chief executive officer, said: “In March 2015 we set out our strategy to focus Serco on being a leading supplier of public services.
“A core part of that strategy was our decision to sell our private sector BPO operations. I am delighted that we have agreed this sale to Blackstone and secured this important part of our overall plan.
“This disposal will not only strengthen further our balance sheet but also enable us to focus on the Group’s five core markets. Overall this gives us greater financial and operational flexibility to move forward, doing what we do best.”
The transaction is expected to be completed around the end of 2015.
For the year ended 31 December 2015, the offshore BPO operations were expected to generate revenue of approximately £235m and contribute EBITDA of approximately £35m and Trading Profit of £23m.