Capita buys Vertex
The acquisition of Vertex MS further strengthens Capita’s growing position within the third party mortgage administration market.
Last year Capita added retail mortgage administration to its capabilities following the purchase of Crown Mortgage Services.
Capita already has a strong working relationship with Vertex MS that specialises in providing mortgage processing and administration software solutions to major retailers and high street banks.
Vertex MS employs 340 people and had an annual turnover in the financial year ending 31 March 2015 of £22.9m with pro forma EBITA of £1.3m. The company is forecasting pro forma EBITA of £2.7m on turnover of £33.1m in its current financial year to 31 March 2016.
Due to synergies and growth expectations, Capita said it would expect the acquisition to achieve its target return on investment of 15% in 2017.
Capita chief executive Andy Parker said: “As part of our strategy to support the financial services industry, Capita’s ambition is to become the mortgage processing partner of choice for existing mortgage providers and challenger banks.
“The acquisition of Vertex MS is another key step towards achieving this goal. This is a market facing continuous regulatory change and changing customer behaviours, and with Capita’s breadth of services and expertise we are well placed to help organisations with these challenges. This market therefore offers significant growth potential for Capita.”
The acquisition includes subsidiary companies: Vertex Financial Services Limited and MS Canada Limited, providers of mortgage software in the UK and Canada; and Jessop Fund Managers Limited, providers of unit trust and pension administration services in the UK.