MITIE GROUP plc has entered into an agreement to sell its Document Management business to Swiss Post Solutions Limited 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 for the twelve-month period leading up to 31 March 2021.
The deal is conditional on the completion of a TUPE consultation process with employees of Mitie Document Management and is expected to complete by the end of September.
Headquartered in Zurich and with operations across the world, Swiss Post Solutions is an outsourcing provider of document management services. The business is at the forefront of digital transformation in document management and information processing and looking to grow its Document Logistics and Business Process Services business across the UK and Ireland.
Following the completion of the transaction, document management services will remain an important part of Mitie’s integrated facilities management (IFM) service offer to its clients under a ‘preferred supplier’-style partnership with Swiss Post Solutions. The additional scale and expertise of Swiss Post Solutions will enhance the range of document management services offered to Mitie’s IFM clients.
The sale of Mitie’s Document Management business continues the Mitie Group’s strategy of realising value from non-core businesses, while allowing reinvestment (such as the DAEL Telecom acquisition made earlier this month) in higher growth opportunities all underpinned by the organisation’s ‘Science of Service’ technology in a post-COVID world.
Phil Bentley (pictured), CEO of the Mitie Group, said: “By joining forces with Swiss Post Solutions, the Document Management business will continue to grow and flourish, allowing Mitie to focus on its technology-led ‘Science of Service’ strategy in our core divisions.”
Bentley added: “I would like to thank the Document Management team for their contribution to the Group. We now look forward to working with Swiss Post Solutions to bring new innovation to our existing and future IFM clients.”