Xchanging has acquired all the European operations from the U.S.-headquartered insurance software business Agencyport Software, for a cash consideration of £64.1 million.
The acquisition will expand and strengthen Xchanging’s existing insurance software business, Xuber. This will also support Xchanging’s strategy to build its insurance business globally and acquire technology and intellectual property that enables greater value generation.
The acquisition 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, which was announced yesterday, 3 July 2014.
Agencyport Software’s offering is complementary to Xuber’s offering and extends the enlarged group’s product range, notably into health insurance and exposure modeling.
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.
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, said, “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.”