Xchanging, a UK-based provider of back office processing services, is acquiring a 10% stake in Italian financial software vendor CAD IT.
Under the deal, Xchanging says it will acquire a 2.5% stake from each of CAD IT's founders, corresponding to a global 10% shareholding at the price of EUR10.7 per share.
Commenting on the deal, Giuseppe Dal Cortivo, CEO of CAD IT, says: "For CAD IT, Xchanging brings an international network and investment along with the knowledge to extend our reach in the broader European financial services market."
Xchanging says it has also signed a letter of intent with CAD IT in order to esatablish a strategic alliance that will see the two companies integrating their technologies to create a pan-European securities processing platform.
David Andrews, CEO, Xchanging, says: "The combination of technology and scalable processing capability will enable us to provide consolidated business processing services to the European financial services market."
Over time, the two companies also expect to broaden their service offering and product portfolio into other financial services market sectors.