16 August 2007 | Paul Snell
European IT services firm Steria has bought UK technology and outsourcing company Xansa in a £472 million deal.
Steria said the takeover would create synergies that result in cost savings of ?24 million (£16.2 million) in 2008, ?49 million (£33 million) in 2009 and ?53 million (£35.8 million) by 2010.
The Paris-based provider said current Xansa employees would be integrated into the group. Xansa has 8,000 employees, 5,000 of which are located in India. The UK firm said the deal means it will be able to offer its clients a broader range of services.
François Enaud, general manager and CEO of Steria, said: "This transaction constitutes a major step in the implementation of our strategic plan. I am sure that such an alliance represents an exciting opportunity for all of our employees."
Xansa's revenues in the last financial year were £379.7 million, with operating profits of £25.2 million. Steria's revenues were ?1.2 billion (£811.7 million) with operating profits of ?89.6 million (£60.6 million).