Computer Sciences Corporation (CSC) may be a late entrant into the battle to acquire Xchanging after expressing an interest in tabling an all cash bid that would represent a 6% premium to Capita’s 160 pence per share offer.
CSC confirmed on Thursday that it had sent a letter to Xchanging’s board outlining its interest in making an all cash offer of 170 pence per share to acquire the entire issued and to be issued share capital of the UK-based information technology service provider.
That bid would represent a 6% premium to the all cash final offer of 160 pence per share that Capita submitted to Xchanging on October 14, 2015.
CSC has urged those Xchanging shareholders who have not already accepted Capita’s October 14 bid not to do so. The Falls Church, Virginia-based company added that it will make a further announcement in due course.
Apollo Investment Fund VIII’s decision to withdraw from the race to acquire Xchanging earlier this month had seemingly paved the way for Capita to purchase the UK-based firm (www.reactionsnet.com Nov 4, 2015). Apollo had also made an offer of 170 pence per share, but that was rejected by Xchanging’s board in favour of the rival Capita bid.
Xchanging’s shares closed at 171p after Thursday trading, up 7.21% compared with its opening price.
Xchanging posted flat operating profits of £20.4m at the halfway stage this year on net revenues of £199.4m. It said at the time that there are a number of variables to the potential full year outcome, including progress on the reorganisation of its procurement business and the timing of Xuber contract wins.
Xuber is Xchanging’s insurance policy administration software business used bt around 30 insurance companies. Xuber covers a range of business processes including CRM, underwriting, accounts, claims and both bureau and non-bureau messaging.