US technology services giant Computer Science Corp seems all set to purchase British insurance services provider Xchanigng Plc for $720 million. London-based Xchanging is a provider of technology-enabled business processing, particularly in the insurance and financial sector in 42 countries.
The deal will allow CSC to combine its expertise in insurance, business process outsourcing (BPO) and IT services with Xchanging’s software applications to provide better services for commercial insurance industry.
Furthermore, Xchanging comes with Xuber software, a widely used platform in the British insurance market. Its insurance services include processing policies premiums and claims. In addition to the insurance sector, CSC sees opportunities to leverage Xchanging’s capabilities in other areas, such as wealth management outsourcing services and infrastructure and applications.
In a press release, CSC said it will also assess Xchanging’s other businesses to see how they might add value to CSC’s existing offerings and customer relationships.
There were many bidders trying to acquire Xchanging and they include Capita, insurance software maker Ebix Inc and US-based private equity investor Apollo Global Management. Xchanging, which offers back-office invoice processing to insurance claims settlement, said its board would unanimously back the CSC offer.
“Xchanging’s capabilities and experience in the commercial insurance market would complement CSC’s global insurance presence in software, outsourcing and services,” said Mike Lawrie, CSC’s president and CEO.
With annual revenue of well over $12 billion and 74,000-strong workforce, CSC is among the largest outsourcing companies in the world. About a fortnight ago, CSC bought Australian IT services major UXC Ltd for approximately $308 million and gained a wider foothold in the Asia-Pacific region.