Steria to acquire BPO outfit Xansa
30 July 2007 | 6028 views | 0
French IT services company Groupe Steria has agreed to acquire Xansa in a 130 pence-per-share deal that values the UK BPO firm at £427 million.
Xansa said on Friday that it was in advanced takeover talks with an undisclosed company after its share price rose 20% in early trading on the back of bid speculation.
The 130 pence-per-share cash offer from Groupe Steria is 69.9% above Xansa's closing share price of 76.5 pence on Thursday.
UK-based Xansa provides onshore and offshore outsourcing services and employs 8000 staff - of which 5000 are located in India. Its clients include Lloyds TSB and Co-operative Financial Services and The Financial Services Authority (FSA) as well as non-financial firms such as Transport for London.
Steria says the deal will accelerate its strategic plan to develop "one of the most advanced business models in the European IT services sector". Post-Acquisition, the merged group will be among the top 10 IT service providers in Europe, says Steria, with a significant presence in the financial services and public services industries.
The acquisition, which is expected to close by the end of October, will boost Steria's earnings per share from 2008, before restructuring and other costs.
The deal is expected to deliver total pre-tax synergies of around EUR24 million in 2008, EUR49 million in 2009 and EUR53 million from 2010 onwards, says Steria.