IT services provider CSC has made an offer to purchase Xchanging in a deal valued the UK-based outsourcing company at about 421 million pounds or $640 million.
CSC has made the offer at a time when the board of Xchanging has already accepted a takeover offer from Capita Plc. Xchanging shareholders, who have not already accepted Capita’s offer for Xchanging announced on 14 October 2015, are urged not to accept Capita’s offer.
Computer Sciences is offering 170 pence per share against Capita’s fourth proposal of 160 pence per share, which values the company at 412 million pounds.
The US-based CSC confirmed that it sent a letter to Xchanging board outlining its interest in making an offer to acquire the company. CSC’s proposal represents a premium of over 6 percent to Capita plc’s recommended all cash final offer of 160 pence per share announced on 14 October 2015.
Xchanging offers IT services including back-office invoice processing to insurance claims settlement. Xchanging’s Xuber software caters to the Lloyd’s of London insurance market.
Earlier in November, U.S.-based private equity firm Apollo Global Management dropped out of a race to acquire the company, Reuters reported.