Capita plc announced yesterday that it is acquiring ParkingEye, a provider of technology based car parking services, for an enterprise value of £57.5 million on a cash free debt free basis.
ParkingEye's automatic number plate recognition (ANPR) based management system is used by clients to provide remote enforcement, management information and alerting systems. The technology, which is adaptable across market sectors, is designed to ensure that car parks are used by individuals with a legitimate right to use them and allows clients to retain a fair approach to parking charges and cancellations. The business currently provides services to clients such as Aldi, Morrisons and British Land.
ParkingEye is forecasting an operating profit of £8.1 million on turnover of £25.8 million in its financial year to 31 August 2014.
Speaking of the acquisition, Capita chief executive Paul Pindar said: "This acquisition will allow Capita to develop a complete and sophisticated car park management and enforcement business for new and existing clients in leisure, local government, the NHS, education and the retail industry, including Capita's extensive customer base. It has synergies with our existing cash collection and payment processing business and will allow us to offer clients the benefits of a well-managed car park, creating availability for customers, citizens and patients."
The acquisition will be satisfied in cash of £54.8m (£23.9m payable on completion and £30.9m payable at certain times during the period up to and including February 2014) and the issue of 413,421 ordinary shares of 2 1/15p each in Capita plc (`Consideration Shares') to certain selling shareholders.
Based in Chorley, Lancashire, ParkingEye has around 160 employees, managing more than 830 car parks across the UK.