XCH.L Share News (XCH)

Xchanging, a business process, procurement and technology services provider, has acquired SBB Services, a US-based e-Sourcing Software-as-a-Service provider. The acquisition, which forms part of the company's technology-enablement strategy, was made for up to $22m, with $11m paid initially, and further payments to be made between 2014 and 2016 based on the achievement of certain milestones. SBB Services trades as MarketMaker4, or MM4, and has been acquired to add a strong technology capability, with extensive experience in e-Sourcing, online auctions, market intelligence, strategic sourcing, and supply chain consulting, to complement Xchanging's existing Procurement business. The move will allow the company to directly engage in the e-Sourcing segment of the procurement market, it said. The three founding shareholding directors of MM4 will remain with the business.Xchanging Chief Executive, Ken Lever, said: "I am very pleased to announce the acquisition of MM4. This is the kind of bolt-on technology acquisition that fits perfectly with our strategy, bringing higher value and differentiation to our offerings. "Following a number of recent contract wins in the US market, this acquisition also helps us further build our position in this important market."NR