LONDON (Alliance News) - Xchanging PLC said Thursday 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.
Xchanging said the acquisition will allow it to combine its Binder360 offering with Total Object's BinderCloud software offering, as well as further potential synergies with its Xuber insurance software.
If cleared, Xchanging will pay for the acquisition from its existing cash resources, with GBP11.5 million due on completion and a further GPB9.5 million payable in 2015, 2016 and 2017. Of this, GBP1.5 million is deferred, while the rest is subject to performance targets.
Total Objects posted earnings before interest, tax, depreciation and amortisation of GBP500,000 in 2013. Xchanging expects the acquisition to begin adding to earnings in 2015.
"Insurance is a core market for our services, and Total Objects will contribute to the further development of our presence in the Binder market as well as providing synergies with our Xuber insurance software," said Chief Executive Ken Lever in a statement.
Shares in Xchanging were trading up 2.5% at 156.00 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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