Capita says CMA has cleared Montagu-ParentPay merger

Capita said on Monday that the Competition and Markets Authority has approved the merger of Education Software Solutions (ESS) and ParentPay.

On 2 February, ESS was bought by Tiger UK Bidco Limited, a newly-formed company established by funds advised by private equity firm Montagu with the intention of merging the business with ParentPay once the competition watchdog had given its approval.

Capita reiterated that Montagu will pay the outsourcer a deferred £45m as a result of the approval by the CMA. The company expects to receive the payment on or before 26 July.