Capita, which currently manages £129bn of commercial loans for banks, will acquire Crown for an undisclosed sum, subject to approval from the Financial Conduct Authority.
Crown currently provides residential and commercial mortgage administration services to banks and other financial providers. This includes commercial servicing, residential primary servicing, new mortgage origination, equity release administration, credit management and due diligence.
Andy Parker, Capita chief executive, said: “Capita’s ambition is to be the leading end to end service provider to banks and investors across all asset classes and on a pan European basis.
“The acquisition of Crown will broaden and strengthen the range of services we can offer financial services clients and, vitally, provide us with an immediate and well established position in the residential loan servicing market.
“We think that the combined strengths of Capita and Crown will provide a compelling proposition both for the traditional and challenger banks, particularly as we invest in infrastructure to support both existing and new mortgage administration.”
