In­sur­ance soft­ware maker Ebix ap­proaches Xchang­ing

Kuwait Times - - BUSINESS -

BEN­GALURU: In­sur­ance soft­ware maker Ebix Inc said it made a 450 mil­lion-pound ($684 mil­lion) takeover ap­proach for Xchang­ing Plc, making it the lat­est com­pany to show an in­ter­est in the provider of ser­vices to the in­sur­ance in­dus­try. Xchang­ing’s shares rose as much as 9.8 per­cent to 185 pence, a six-month high, af­ter Ebix’s an­nounce­ment yes­ter­day. They later gave up some gains to trade up 5.2 per­cent at 177.25 pence. Ebix said it made a po­ten­tial cash of­fer valu­ing Xchang­ing at 175 pence per share, rep­re­sent­ing a 3.9 per­cent pre­mium to the stock’s close on Fri­day.

Xchang­ing had last month agreed to a takeover of­fer from out­sourc­ing com­pany Capita Plc worth 160 pence per share, or 412 mil­lion pounds. Xchang­ing has also been the sub­ject of in­ter­est from pri­vate eq­uity firm Apollo Global Man­age­ment LLC and tech­nol­ogy con­sult­ing ser­vices provider Com­puter Sci­ences Corp. Com­puter Sci­ences made a 170 pence pro­posal to Xchang­ing last week, a week af­ter Apollo dropped out of the race. Un­der UK takeover rules, Ebix now has three weeks to make a firm ap­proach for Xchang­ing. Xchang­ing’s shares have risen more than 50 per­cent since the com­pany first made pub­lic Capita’s and Apollo’s of­fers in early Oc­to­ber. —Reuters

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