Cambridge Integrated Service Parent To Be Acquired

London-based Xchanging has agreed to pay $145.6 million to acquire 75 percent of the fully diluted share capital of Bangalore, India-based Cambridge Solutions from a group of Cambridge Solutions' major shareholders.

Cambridge Solutions is the parent of Cambridge Integrated Services, a Greenwich, Conn.-based claims and risk management services firm. The transaction was announced last week.

With approximately 4,500 employees, Cambridge Solutions is an international business process outsourcing (BPO) and information technology services provider with a global presence through offices in eight countries across four continents.

The company said the sale price will be approximately ?83 million ($145.6 million), comprising Rs 3,712 million in cash (equivalent to approximately ?45 million ($79 million at current rates) and the issue of 15,249,998 new Xchanging Shares. The new Xchanging Shares amount to 7 percent of the company's current issued ordinary share capital.

The company said in a statement that the acquisition is consistent with its strategic objectives and the dynamics of the BPO market, and represents the next step in Xchanging's development.

Adding Cambridge Solutions, Xchanging said, delivers greater scale, broader international reach and a number of platforms for significant future growth.

Xchanging said the transaction also adds processing capabilities and a strong market presence in the United States, which can serve as a springboard for future growth.