Xchanging buys India’s Cambridge for Rs 690 cr

As per the Sebi takeover rules, Xchanging will make an open offer to acquire up to 20 per cent of the fully diluted voting share capital of Cambridge Solutions. “Any Cambridge shares acquired under the open offer will reduce the number of Cambridge Solutions shares to be acquired from the major shareholders, as will any reduction in the fully diluted share capital of Cambridge Solutions in the period to completion,” it said in a statement.

The acquisition is expected to increase earnings before one-off costs from the first year after completion, the UK firm said. The acquisition would give it a market presence and potential for further growth in the United States and Australia, as well as “critical mass” in its Indian offshore operations.

On its current trading, Xchanging, a business processing company, said sales have been healthy and it expects its full year performance to be in line with expectations.

David Andrews, Chief Executive Officer of Xchanging said: “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.”

Cambridge Solutions and Xchanging have had a commercial relationship for two years, under which Cambridge Solutions provides services through its Indian operation to Xchanging Broking Services.

75 per centThe stake Xchanging will pick up in India’s Cambridge Solutions

Rs 371.2 crThe amount in cash it will pay for the acquisition

1.52 crThe number of new Xchanging shares the consideration for the acquisition will include