CSC Completes Xchanging Acquisition
May 05 2016 - 2:14AM
Business Wire
Deal Closure Creates a Leader in Technology and
Business Process Services for the Insurance Industry Globally
CSC (NYSE:CSC), a leading provider of next-generation
technology solutions and services, today announced that it has
completed the acquisition of Xchanging plc.
CSC and Xchanging together will create a new leader in
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.
Xchanging provides technology-enabled business solutions to
organizations in global insurance and financial services,
healthcare, manufacturing, real estate and the public sector. The
acquisition brings:
- Market leading insurance software,
Xuber, which has served the global complex commercial insurance
market for over 40 years.
- Deep domain expertise and leadership
within the London insurance market, where Xchanging has been
recognized as the number one provider of services and technology
since 2001.
- A leading position providing property
and casualty insurance and wealth management business processing
services.
With the acquisition of Xchanging, CSC will be at the heart of
the insurance industry’s digital transformation. The acquisition is
a cornerstone of the company’s strategy to lead clients on their
digital journey with next-generation IT offerings. That strategy
leverages partners, industry software and deep domain
expertise.
“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.”
For CSC’s non-insurance clients, the addition of Xchanging will
enable the company to offer access to a broader, partner-enriched
portfolio of services.
“Our integrated organization will now offer innovative,
next-generation technology solutions and services to every segment
of the insurance market globally,” said Phil Ratcliff, vice
president and general manager of CSC’s global insurance industry.
“Together, we will innovate, design and deliver the most
challenging insurance projects for our clients, transforming their
businesses and the market.
“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.”
Commenting on the integration, Jamie Macgregor, senior vice
president, global insurance at Celent, a research and management
consulting firm focused on the application of IT in the global
financial services industry, said: “The addition of Xchanging
strengthens CSC’s insurance footprint where, according to Celent’s
own data, it is the largest provider of core insurance solutions
globally. For Xchanging clients, CSC brings with it a whole new set
of capabilities and skills relevant to its own segment of the
market, in areas such as digital transformation, cloud
orchestration and broader technology services.”
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.
ABOUT CSC
CSC (NYSE: CSC) leads clients on their digital transformation
journeys. The company provides innovative next-generation
technology services and solutions that leverage deep industry
expertise, global scale, technology independence and an extensive
partner community. CSC serves leading commercial and international
public sector organizations throughout the world. CSC is a Fortune
500 company and ranked among the best corporate citizens. For more
information, visit the company's website at www.csc.com.
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CSCMedia:Rich Adamonis, +1
862-228-3481radamonis@csc.comorJo Davis, +44 7799
476532jdavis62@csc.comorInvestor Relations:Neil DeSilva, +1
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