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DLA Piper and A&O lead firms on Link’s £888m buyout of UK business services group Capita

Eversheds Sutherland, Macfarlanes, DLA Piper and Allen & Overy (A&O) are advising on Australia-headquartered Link Group’s £888m purchase of UK-based Capita Asset Services (CAS), in an European expansion bid by the business services firm.

DLA Piper and A&O are acting for the Australian financial data expert buyer Link Group on the deal, which is subject to regulatory approvals. It is expected to complete by 31 December.

Eversheds partner Jon Cox-Brown led the team assisting CAS, with corporate and M&A partner Stephen Drewitt headed Macfarlanes’ team, which advised CAS on their options as a result of the deal.

Capita chief executive Andy Parker said in a statement the company had achieved what he considered an attractive price and the deal would mean a ‘significant’ reduction in leverage.

CAS operates in four major business segments, fund solutions, shareholder solutions, corporate and private client solutions, banking and debt solutions, said its estimated expenses on the deal were around £72m. These included separation related costs, such as a £17m one-off pension contribution.

The company said would use the net cash proceeds from the sale to reduce indebtedness, including the company’s receivables financing facility.

CAS administers around £600bn of assets and in 2016 managed circa £45bn in annual payments for its customers.

Link, which provides technology to manage financial ownership data, serves large asset companies and trustees. The group said it would use CAS’s market positions and client relationships to expand across Europe.