The merger will give CSC’s clients access to Xchanging’s well-established insurance software Xuber, as well as expanding CSC’s presence in the London insurance market.
The deal was reached after nearly a year of negotiations that will see CSC pay £1.90 per share in cash for 87 percent of the existing issued share capital of Xchanging.
The acquisition was “accepted overwhelmingly by Xchanging shareholders, with approval by the CSC and Xchanging boards and regulators”, according to CSC’s statement on the acquisition.
“We are delighted to have the Xchanging team join CSC to create a dynamic technology leader,” said Mike Lawrie, CSC’s chairman, president and CEO.
“The addition of Xchanging is another step toward our goal of becoming a leader in the key geographies and markets we serve. 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: “The way insurance is being bought, sold and managed is changing rapidly.”
“Many insurers now recognise the need to take a ‘digital first’ approach in order to maintain their relevance with distributors and clients. The coming together of these two organisations provides a complementary set of technology and business process services to help insurers on their road to digital.”