The acquisition of Vertex MS further strengthens Capita's growing position within the third party mortgage administration market. Building on its commercial mortgage servicing activities, last year Capita added retail mortgage administration to its capabilities following the purchase of Crown Mortgage Services Limited.
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 £22.9 million with pro forma EBITA of £1.3 million. The company is forecasting pro forma EBITA of £2.7 million on turnover of £33.1 million in its current financial year to 31 March 2016. Due to synergies and growth expectations, Capita expect the acquisition to achieve its target return on investment of 15% in 2017.
Capita plc 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.
"Coupling Vertex MS's specialist software with Capita's experience in business process and customer service transformation will position us uniquely in the market. The acquisition will allow us to deliver real value for mortgage providers, respond to the needs of existing providers and new entrants, and enhance our ability to service large-scale clients."
