Mitie has agreed to sell its document management business to Swiss Post Solutions Limited (SPS) for £40 million on a debt-free, cash-free basis.
Mitie Document Management delivered revenue of £48 million and an EBITDA of £4.2 million over the 12 months to 31 March this year.
Swiss-owned SPS, which has its UK headquarters in Richmond upon Thames, is an outsourcing provider of services at the forefront of digital transformation in document management and information processing and is looking to widen its document logistics and business process services business across the UK and Ireland. Its scale and expertise are expected to enhance the range of document management services offered to Mitie’s IFM clients.
The deal is contingent on the completion of a TUPE consultation process with Mitie Document Management’s employees and is expected to be finalised by late September. On completion of the transaction, the services will remain a vital part of Mitie’s integrated facilities management (IFM) service offering, under a preferred supplier partnership with SPS.
The sale of this division, said Mitie, continues the group’s strategy “of realising value from non-core businesses whilst allowing reinvestment [such as the DAEL Telecom acquisition made earlier this month] in higher growth opportunities, underpinned by its ‘Science of Service’ technology in a post-Covid world”.
Phil Bentley, Mitie CEO, said: “By joining forces with SPS, the document management business will continue to grow and flourish, allowing Mitie to focus on our technology-led, science of service strategy in our core divisions.
“I would like to thank the document management team for their contribution to the group, and look forward to working with SPS to bring new innovation to our existing and future IFM clients.”