The Cabinet Office and Capita have sold off Axelos, their joint venture that manages the ITIL framework for IT service management.
Chancellor of the Duchy of Lancaster Michael Gove MP told Parliament they have sold the organisation, in which the Cabinet Office had a 49% stake, to PeopleCert International, which specialises in the assessment and certification of professional skills.
Gove said the step has been taken follow a strategic review triggered by Capita wanting to sell its majority stake. The Cabinet Office decided it would earn more from the sale of the whole business than through a separate sale of its own share.
Axelos was set up in 2013 to commercialise some of the best practice methodologies the Government had developed. It has involved the management of ITIL, formerly the IT Infrastructure Library, a best practice framework for IT service management that emerged from the Civil Service but draws on experience from public and private sectors.
Gove said the sale has valued the business at £380 million on a cash free, debt free basis, and that it will provide the Cabinet Office with approximately £175 million – in addition to cash dividends of approximately £10.7 million this year.
Axelos staff and senior management are transferring to the new owner.
Image from Image by Richard Townshed, CC BY 3.0
