Capita has signed a contract with The Co-operative Bank to run its mortgage servicing operation in the UK.
Capita previously announced on 14 November 2014 that it had been selected as preferred bidder for this contract by The Co-operative Bank. The contract is worth up to £325m over 10 years and is starting on 1 August 2015.
As part of the deal Capita has acquired Western Mortgage Services Limited (WMS), the Co-operative Bank’s mortgage administration business. Capita is acquiring WMS for £25 million on a cash free, debt free basis with a further deferred consideration of £5m to be made one year after the acquisition.
Andy Parker, Capita’s chief executive, said: “This deal and acquisition, alongside our recent announcement that we are acquiring Vertex Mortgage Services Limited, subject to regulatory approval, will help Capita achieve its ambition of becoming the leading end-to-end mortgage processing partner for clients.
“Capita will work with The Co-operative Bank to deliver an enhanced service for customers. This will be done by drawing upon Capita’s existing and wide ranging commercial debt-servicing capabilities and its heritage of large scale customer service transformation across a range of industries.”
