CSC completes acquisition of Xchanging

CSC, a provider of next-generation technology solutions and services, has completed the acquisition of Xchanging.

CSC and Xchanging together will create a new technology and business process services for the global insurance industry, significantly expanding CSC’s market coverage and enhancing the range of services to clients of both companies.

The acquisition was accepted overwhelmingly by Xchanging shareholders, with approval by the CSC and Xchanging Boards and regulators.

The combination of CSC and Xchanging is the culmination of a due diligence process that began in November 2015. On December 9, 2015, CSC’s Board of directors, along with the Board of Xchanging, agreed to terms of the recommended transaction under which CSC would acquire Xchanging at the price of £1.90 per share in cash.

On January 18, 2016, CSC announced that acceptances had been received from Xchanging shareholders holding approximately 87 percent of the existing issued share capital of Xchanging.

The acquisition has now closed following receipt of merger control and regulatory clearances.

“We are delighted to have the Xchanging team join CSC to create a dynamic technology leader,” said Mike Lawrie, CSC’s chairman, president and chief executive officer. “The addition of Xchanging is another step toward our goal of becoming a leader in the key geographies and markets we serve.

He added: “Xchanging’s people and offerings portfolio are a complement to CSC’s existing business, which will allow us to demonstrate our commitment to areas such as the London market and the commercial insurance industry.”

Phil Ratcliff, vice president and general manager of CSC’s global insurance industry, added: “Our integrated organisation will now offer innovative, next-generation technology solutions and services to every segment of the insurance market globally.

“Together, we will innovate, design and deliver the most challenging insurance projects for our clients, transforming their businesses and the market.

He continued: “The way insurance is being bought, sold and managed is changing rapidly,” Ratcliff continued. “Many insurers now recognize the need to take a ‘digital first’ approach in order to maintain their relevance with distributors and clients. The coming together of these two organizations provides a complementary set of technology and business process services to help insurers on their road to digital.”

Xchanging provides technology-enabled business solutions to organisations in global insurance and financial services, healthcare, manufacturing, real estate and the public sector.