Computer Sciences Corporation (CSC) has agreed to acquire UK-based firm Xchanging, for an equity value of £480m or about $720m.
Under the deal, CSC will pay £1.90 per share in cash to stakeholders of Xchanging.
The deal will allow CSC to combine its knowledge in insurance, business process outsourcing (BPO) and IT services with Xchanging’s specific expertise and software applications to provide better services for commercial insurance industry.
CSC president and CEO Mike Lawrie said: "Xchanging’s capabilities and experience in the commercial insurance market would complement CSC’s global insurance presence in software, outsourcing and services.
"I look forward to welcoming Xchanging to the CSC family as we continue to grow our insurance business and invest in our differentiated next-generation solutions."
CSC provides software, services and outsourcing to the insurance industry, and helps its insurance industry customers to build new digital businesses and expand operations.
Xchanging’s acquisition will enable CSC to provide modernized suite of insurance platforms to its customers, including insurers, managing agents and brokers.
The acquisition will also allow CSC to provide wealth management outsourcing services and infrastructure and applications, in addition to the insurance services.
Subject to regulatory approvals, the deal is expected to complete in the next six months.
Image: Xchanging’s acquisition will allow CSC to provide modernized suite of insurance platforms to its customers. Photo: courtesy of adamr / FreeDigitalPhotos.net.