United Utilities has sold its business process outsourcing (BPO) unit Vertex to a private equity consortium led by US-based Oak Hill Capital in a deal worth £217.5 million.
Reports surfaced in June last year that United Utilities had hired investment bank Merrill Lynch as a financial adviser after receiving several bid offer for the Vertex unit. United Utilities confirmed that it was selling off the unit in December.
The winning group, which also includes GenNx360 Capital Partners and Knox Lawrence International, has signed a definitive agreement to acquire Vertex for a maximum consideration of £217.5 million deal comprising cash, the repayment of intra-group debt and the assumption of certain Vertex liabilities.
Completion of the sale is expected by the end of March 2007, subject to regulatory requirements.
Vertex moved into the financial services sector after buying UK life and pensions vendor Marlborough Stirling in March 2005.