16th Nov 2015 14:08
LONDON (Alliance News) - The US's Ebix Inc on Monday entered the battle to acquire Xchanging PLC, a London-listed business processing, procurement and technology services provider, throwing its name into a hat already containing rival offers from FTSE 100 outsourcer Capita PLC and New York-listed consultancy Computer Sciences Corp.
The potential offer from Atlanta-based Ebix, a supplier of on-demand software and e-commerce services to the insurance, financial and healthcare industries, values Xchanging at 175 pence per share, equivalent to GBP450.0 million. In response, Xchanging confirmed it has begun talks with Ebix.
Ebix's potential offer is higher than Capita's bid of 160p per share and Computer Sciences Corp's proposal of 170p per share.
Shares in Xchanging were up 5.0% at 177.00p on Monday afternoon.
"We see substantial synergies, economies of scale and growth potential for the combined business. Our interest in making an offer for Xchanging PLC is borne out of our belief that a combination of the two companies could be substantially and immediately accretive to Ebix's EPS [earnings per share] while also adhering to our other stringent criteria," Robin Raina, Ebix president and chief executive, said in a statement.
Capita built a 10% stake in Xchanging in the wake of winning board approval for its GBP412.0 million bid on October 14. That recommendation was made in the absence of a higher offer. Apollo Global Management LLC, an alternative asset management firm, pulled out of talks to acquire the company on November 4.
By Samuel Agini; [email protected]; @samuelagini
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