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, it values Xchanging at GBP488.0 million.
Shares in Xchanging were up 8.3% at 190.25 pence Wednesday morning.
Xchanging's director 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Xchanging confirmed following the CSC release that it has withdrawn its recommendation for Capita's offer in favour of the CSC bid.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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