Xchanging plc, the business process, procurement and technology services provider, today announced the acquisition of all the European operations ('Agencyport Europe') from the US-headquartered insurance software business Agencyport Software, for a cash consideration of £64.1m.
The acquisition will expand and strengthen Xchanging's existing insurance software business, Xuber, and support Xchanging's strategy to build its insurance business globally and acquire technology and intellectual property that enables greater value generation. It follows the previous technology acquisitions of AR Enterprise in November 2012, and MarketMaker4 in September 2013, and most recently of insurance software business Total Objects Limited, which was announced yesterday, 3 July 2014.
Agencyport Europe is headquartered in London and provides software to the property & casualty and health insurance markets. The software suite offers exposure modelling and risk analysis, policy administration, billing and claims business processing.
Its software is highly complementary to Xuber's offering and extends the enlarged group's product range, notably into health insurance and exposure modelling. Synergies between the technology and customer bases also provide the potential to expand the product portfolio for the commercial and London insurance market as well as globally, through Xchanging's international reach.
The company has 160 employees based in London, Leeds and Cwmbran and the workforce, including its senior management team, will be joining Xchanging. In time, Agencyport Europe will be rebranded under the Xuber name and will be part of Xchanging's Technology business. Phil Race (Managing Director, Agencyport Europe) and Andy Lovett (Chief Operating Officer, Agencyport Europe) will continue as leaders within the business.
Ken Lever, Xchanging Chief Executive, commented: "Agencyport Europe is a very exciting and highly complementary addition to our insurance software division, Xuber, and we are delighted to be able to welcome Phil, Andy and the team on board. This is a significant acquisition, and perfectly in line with our strategy - it will enhance our existing insurance software product set, open new markets, and provide access to a blue-chip customer base. We also expect to identify cross selling opportunities, not just for Xuber, but also for all our offerings while Agencyport Europe will benefit from our strong global distribution network and marketing resource."
"The insurance market continues to evolve rapidly and this is being driven by technological change. Technology-enablement is central to success in our markets and to our strategic aims. Today's acquisition makes a significant contribution towards achieving our long term goals."
Phil Race, Managing Director of Agencyport Europe, said: "There is significant value in the two companies coming together; for our combined customer community, for our respective businesses, and for our people. We share similar strong values and an open and engaging approach with customers. We will continue to offer the best product suite available, through a highly dedicated and talented team, and will remain absolutely focused on our commitments. We look forward to integrating with Xuber and working together."
Andrew Binns, Executive Director of Xchanging, said: "We are committed to investing in technology that benefits our customers, in London and around the world. Agencyport Europe has an excellent track record, high calibre talent and a strong management team with unique sector experience. Not only does today's acquisition make an important contribution towards achieving our goals, the insurance technology market will also benefit from the combined expertise and the wider global footprint. We look forward to welcoming our new colleagues to Xchanging."