Xchanging Plc, the UK provider of back-office services, said today that it had agreed to buy 75 per cent of Bangalore-based Cambridge Solutions Ltd for £83 million (Rs 688 crore) in stock and cash.
The UK firm will pay Rs 371 crore in cash and 15.2 million of its shares, equivalent to 7 per cent of Xchanging’s current capital, the company said in a statement released through Business Wire.
“This is a unique opportunity to accelerate our strategy to create a global business processor at a time when our industry is internationalising,” David Andrews, chief executive officer at Xchanging, said in the statement.
The acquirer will offer to buy a 20 per cent stake from Cambridge’s minority shareholders as mandated by Indian regulations, the statement said.
Any shares bought from minority holders will reduce the purchase from majority holders who have agreed to sell 75 per cent, so that Xchanging’s holding does not exceed 75 per cent, it added.
Citigroup Inc and UBS AG advised Xchanging on the deal.
