Xchanging, the business process, procurement and technology services provider, has agreed to buy insurance software business Total Objects for a potential total of up to £21 million.
Total Objects provides the London and global markets with re/insurance software that fully automates the insurance lifecycle.
The value of the gross assets being acquired is £4.6 million for the year ended 31 December 2013.
Xchanging said that the acquisition will enable it to realise product development synergies in the Binder market by combining its Binder360 offering with the Total Objects BinderCloud software offering. It added that Total Objects also offers further potential synergies with Xchanging’s Xuber insurance software.
Total Objects’ employees and management will join Xchanging, including the three founder shareholders, Larry Sullivan (Total Objects’ non-executive chairman), Jim Barry (Total Objects’ managing director), and Vladimir Serbin (president of Total Objects’ Russia).
On competition and markets authority (CMA) clearance, Xchanging will pay a total cash consideration of up to £21 million for the acquisition on a cash-free, debt-free basis, to be satisfied from Xchanging’s existing cash resources.
Ken Lever, Xchanging chief executive, said: “Insurance is a core market for our services, and Total Objects will contribute to the further development of our presence in the Binder market as well as providing synergies with our Xuber insurance software. Total Objects has a talented team with a proven track record of product development: it will fit very well with our growing insurance software business. I am pleased to announce today’s acquisition and look forward to welcoming the Total Objects business into Xchanging. ”
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Total Objects, Xchanging, Europe