LONDON (Alliance News) - Xchanging PLC Wednesday said its acquisition of Agencyport Europe has now been cleared by the UK antitrust regulator, meaning it can resume the integration of the business.
The business process and procurement company had announced the GBP64.1 million acquisition of the European operations of US-based insurance software company Agencyport Software last July. However, the company then said in October that the UK's Competition & Markets Authority was to review the acquisition, meaning that the integration, which had been well-advanced according to Xchanging, had to be put on hold.
The CMA then referred the takeover for a so-called Phase 2 in-depth review in December, saying it was concerned that the deal may lead to higher prices or a reduction in choice or quality for Lloyd's of London registered managing agents or reduce the incentives of suppliers to innovate.
The decision caught Xchanging by surprise, but it said it planned to work with the regulator through the deeper review. It could have offered the regulator "acceptable undertakings" to prevent the deeper review, but didn't do so.
"We are very pleased to have the final CMA decision. We can now re-launch our integration programme to deliver the planned market and synergy benefits. Agencyport brings a highly complementary product portfolio that will expand Xuber's range," Xchanging Chief Executive said Wednesday.
"We look forward to putting the power of our global presence behind the enlarged portfolio and into the cross-selling opportunities offered by the client base Agencyport brings," he added.
Xchanging shares were up 1.5% at 120.75 pence Wednesday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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