9th Dec 2015 18:08
LONDON (Alliance News) - US IT and professional services company Computer Sciences Corp on Wednesday said it has agreed a deal to acquire business processing, procurement and technology services provider Xchanging PLC, trumping the previous offer agreed with FTSE 100-listed outsourcer Capita PLC.
CSC will pay 190.00 pence per share for Xchanging, a 19% premium to the 160.00 pence per share offer Capita made for the company. The offer also represents a 72% premium to Xchanging's closing share price on October 2, when talks with potential suitors started, and an 81% premium to its average closing price for the three months leading up to that date.
In total, the offer values Xchanging at GBP488.0 million.
Shares in Xchanging closed up 9.8% at 193.00p on Wednesday.
Xchanging's directors have unanimously recommended the CSC offer, trumping the bid for Capita and also the 175.0 pence offer proposed by US-based Ebix, supplier of on-demand software and e-commerce services to the insurance, financial and healthcare industries.
Xchanging confirmed following the CSC release that it has withdrawn its recommendation for Capita's offer in favour of the CSC bid.
Later, the UK's Takeover Panel said its executive ruled that Ebix must by 1700 GMT on the 53rd day after publication of Computer Sciences Corp's offer document either announce a firm intention to make an offer for Xchanging or walk away.
"Each of Xchanging, Capita and Ebix has accepted this ruling. CSC has requested that this ruling be reviewed by the Hearings Committee of the Panel," the Takeover Panel said.
By Sam Unsted; [email protected]; @SamUAtAlliance
Update by Sam Agini; [email protected]; @samuelagini
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