The sale of procurement outsourcing company Xchanging has come a step closer with an offer by Computer Sciences Corporation (CSC) being accepted by a majority of the target’s shareholders.
Some 87% of shareholders have accepted CSC’s offer of 190p per share, valuing the company at around £480m.
CSC said the offer had become “unconditional as to acceptances” and “Xchanging shareholders who have not yet accepted the offer are urged to do so as soon as possible”.
Once 90% of shareholders accept the offer, CSC has the right to compulsorily purchase the outstanding shares.
In its offer document CSC said it would carry out a review of Xchanging’s operations and “it is expected that this review will likely result in a reduction in the headcount of the combined group and some rationalisation of facilities”.
“The Xchanging directors believe that CSC is a credible counterparty with a strong track record of acquiring and integrating businesses,” the document said. “CSC’s global scope in insurance, BPO and IT services presents a strong platform from which to accelerate Xchanging’s growth.”
A bidding war broke out at the end of last year for Xchanging, which provides procurement, business process and technology services.