LONDON (Alliance News) - Xchanging PLC Friday said it has acquired the European operations of Agencyport Software, a US-headquartered insurance software company, for GBP64.1 million in cash, in a move designed to bolster its existing Xuber insurance software product range and to enable it to expand into the risk-exposure modelling and health-insurance markets.
In a statement, Xchanging said that it expects the acquisition to marginally increase earnings in the current financial year, with the rise to be materially so in 2015.
Agencyport Europe provides software to the property & casualty and health insurance markets. Xchanging said that the deal will provide it with an additional customer base of more than 60 organisations, offering global cross-selling opportunities for Xuber and for Xchanging's other product and service offerings. It also expects the deal to result in a number of cost benefits.
Agencyport Europe reported GBP18.9 million in revenue in 2013, and adjusted earnings before interest, taxes, depreciation, and amortisation of GBP5.0 million.
"Agencyport Europe is a very exciting and highly complementary addition to our insurance software business, Xuber," Chief Executive Ken Lever said in a statement. "The customers in the markets in which we operate increasingly emphasise the importance of technology-enabled solutions to add value to their businesses. Today's acquisition sees a further step for Xchanging towards being the provider of choice in our chosen markets for technology-enabled business processing services," Lever added.
Xchanging has made technology acquisitions a strategic aim, particularly where they bring intellectual property, as well as the expansion of its insurance business globally. The Agencyport Europe deal comes just a day after Xchanging said it will acquire software business Total Objects Ltd for up to GBP21 million in cash, subject to clearance from the UK's Competition and Markets Authority.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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