UK-based back office services provider Xchanging Plc has agreed to acquire 75 per cent stake in IT services firm Cambridge Solutions for about 83 million pounds (Rs 686.84 crore).
As part of the deal, Xchanging would pay Rs 371.2 crore in cash and issue 1.52 crore shares of the firm to Cambridge.
These shares would account for seven per cent of Xchanging's current issued ordinary share capital, the firm said in a statement on Friday.
According to sources, the UK firm would be paying about Rs 81 for each share of Cambridge. This would be a premium of 36.3 per cent over the company's closing price of Rs 59.40 on Friday on the Bombay Stock Exchange.
Meanwhile, in compliance with regulations, Xchanging would make an open offer to acquire up to 20 per cent stake in
Cambridge.
In addition, stocks bought under the open offer would reduce the number of shares to be acquired from the majority shareholders who have agreed to sell 75 per cent shareholding. This would ensure that Xchanging's stake did not exceed 75 per cent, the statement noted.
Commenting on the deal, Xchanging's Chief Executive Officer David Andrews told PTI that India understands high quality services, both in business processing and in IT sector.
“This is a unique opportunity to accelerate our strategy to create a global business processor at a time when our industry is internationalising…
“We will be able to offer customers both global reach and a proven track record in business processing and IT,” he said.
Source: Economic Times