Xchanging, the business process, procurement and technology services provider, today announces the acquisition of Total Objects Limited, the insurance software provider, for a potential consideration of up to £21m.
The transaction is subject to clearance by the Competition and Markets Authority ('CMA').
The acquisition contributes both to the planned development of Xchanging's Insurance business and to its technology enablement strategy. The 'bolt-on' of Total Objects will strengthen Xchanging's technology capability and bring greater expertise into both the Xchanging Insurance and Xuber businesses.
Xchanging's existing Binder 360 Services for Bordereaux transformation will integrate with Total Objects' BinderCloud to provide a compelling end-to-end binder management solution for insurance clients both in the London market and globally.
At the same time, there are also potential synergies between the technology and customer bases for Xuber and Total Objects, with the opportunity to develop a new product roadmap for the retail and wholesale broking, outwards reinsurance and MGA markets in due course.
Total Objects will continue to be marketed under the same name in order to leverage its well-established position in the broking and reinsurance markets.
Ken Lever, Xchanging Chief Executive, commented: "Insurance is a core market for our services and I am very pleased to announce the latest development in support of our Insurance business plan. Total Objects has a talented team with a proven track record of product development: it will fit very well with our growing insurance software business. I am pleased to announce today's acquisition and look forward to welcoming the Total Objects business into Xchanging. "
Adrian Guttridge, Executive Director, Xchanging Insurance, commented: "There are attractive possibilities that will be offered by integrating Binder 360 Services and BinderCloud, with a combined solution enabling clients to gain improved control over their delegated underwriting authorities. We also see potential to open up new opportunities outside of London."
Jim Barry, Managing Director, Total Objects, said, "Xchanhanging and Xuber sit at the heart of the London insurance market, yet their strong global presence means they are respected around the world. I believe the joint delivery capacity and expertise of our businesses, as well as our cloud-based technology provenance will produce an even stronger offering for the market. We recognise the value - for both our business and our customers - of becoming part of this organisation, and look forward to working together."