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Capita purchases Vertex for £35m

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  • 30/06/2015
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Capita purchases Vertex for £35m
Capita has acquired Vertex Mortgage Services for £35m in a deal which it hopes will achieve the firm's target return on investment of 15% in 2017.

Vertex specialises in providing mortgage processing administration software solutions to major retailers and high street banks. The company had an annual turnover of £22.9m in the financial year ending 31 March 2015 and is forecasting a turnover of £33.1m for its current financial year.

The cash and debt free purchase follows Capita’s acquisition of Crown Mortgage Services last year, adding retail mortgage administration to the firm’s skills and strengthening its position within the third party mortgage administration market.

According to research carried out by Deloitte, just 5% of the mortgage servicing market is outsourcing, yet further findings from Nelson Hall predict that the UK’s business process outsourcing mortgage market is estimate to grow to £400m in 2018.

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.”

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