Xchanging acquisition cleared by UK watchdog

The UK’s competition and market authority (CMA) has provisionally cleared Xchanging’s acquisition of the European operations of Agencyport.

Xchanging announced the acquisition of the European operations of the US headquartered insurance software business in July 2014.

Phil Evans, chair of the Xchanging/Agencyport merger group, said: “We have provisionally concluded, following the merger, there would remain a sufficient number of credible suppliers of policy administration systems to Lloyd’s and the London company market.

“In reaching a view, we took account of the sophistication of customers and their ability to deploy a range of strategies to influence suppliers’ offerings or increase their bargaining power in negotiations. We provisionally concluded that, under such circumstances, following the merger, this would not lead to higher prices or lower service quality or reduce the incentives of suppliers to innovate.

“On the basis of the evidence we have seen we have provisionally concluded that customers will not lose out from the merger of Xchanging/Agencyport.”

The inquiry group must report its final decision by May 24, 2015.