Agencyport CMA Update

2 December 2014

Xchanging plc

Competition & Markets Authority refers

 Agencyport Europe¹ acquisition for

Phase 2 Review

Xchanging plc ('Xchanging'), the business process, procurement and technology services provider, today reports that the Competition & Markets Authority ('CMA') has decided to refer the acquisition of Agencyport Europe ('Agencyport') for a Phase 2 Review. This process is expected to take 24 weeks.

On 4 July 2014, Xchanging announced the acquisition of the insurance software company Agencyport. On 1 October 2014 Xchanging reported that the CMA was to conduct a review of the acquisition. Pending the outcome of the CMA investigation, Xchanging was required to put any further integration, which had been well advanced, on hold.

As contained in the CMA's own announcement today, Xchanging has until 9 December to review the notification of their decision and revert to the CMA. Xchanging will issue a further announcement in due course.

Ken Lever, Chief Executive, commented: "This news is both surprising and disappointing. We will continue to work with the CMA to help them with their review process."

¹Agencyport Europe consisted of 4 companies: Agencyport Software Europe Limited, Agencyport Software Europe (Regional Hub) Limited, Agencyport Software Bermuda Limited and Agencyport Software Europe Offshore Corporation, each of which has been re-named (consecutively) as Xchanging Software Europe Limited, Xchanging Software Europe (Regional Hub) Limited, Xchanging Software Bermuda Limited, Xchanging Software Europe Offshore Corporation.

Enquiries

Xchanging plc Tel: +44 (0) 203 604 6999

David Bauernfeind, Chief Financial Officer

Alexandra Hockenhull, Director of Corporate Communications

and Investor Relations

Maitland Tel: +44 (0) 207 379 5151

Peter Ogden

Martin Barrow

Emma Burdett

www.xchanging.com

@XchangingGroup

Linkedin/company/xchanging

Cautionary Statement: 

This announcement contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. In particular, any statements regarding Xchanging's strategy, dividend policy and other future events or prospects are forward-looking statements.  Undue reliance should not be placed on any such statements because they speak only as at the date of this announcement and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors (that could cause actual results, and Xchanging's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

These forward-looking statements are not guarantees of future performance and there are a number of factors (many of which are outside of Xchanging's control) which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among these factors are: increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approval or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects.

Save for those forward-looking statements required by the Listing Rules, the Disclosure and Transparency Rules and/or the Prospectus Rules, Xchanging undertakes no obligation to update these forward-looking statements, and will not publicly release any revisions it may make to these forward-looking statements that may result from events or circumstances arising after the date of this announcements. Xchanging therefore will comply with its obligations to publish updated information as required by law or by any regulatory authority but assumes no further obligation to publish any additional information.