Capita forced to bow out of Xchanging bid
Professional services company Capita has lost out in its bid to acquire business process servicing firm Xchanging after it was unable to acquire sufficient shareholder votes before its offer expired yesterday (December 16, 2015).
Both firms jointly announced that they had reached agreement on the terms of a recommended final cash offer to be made by Capita for the entire issued and to be issued share capital of Xchanging on October 14, 2015.
On November 30, 2015, Capita announced that the offer had been extended until 1pm (London time) on December 16, 2015.
Further to the extension to the offer announced on November 30, 2015, the offer was subject to valid acceptances being received by no later than 1pm on December 16, 2015 in respect of not less than 90 per cent of the Xchanging shares to which the offer related and of the voting rights attached to those shares.
This condition has not been satisfied, which means the offer has lapsed with immediate effect and accordingly, the offer is no longer capable of further acceptance and accepting Xchanging shareholders and Capita have ceased to be bound by such acceptances.
On December 9, 2015, CSC Computer Sciences International Operations (CSC) and Xchanging announced that CSC had made a recommended offer for Xchanging, and Capita announced that it would not be revising its offer.
