UK outsourcing group Xchanging Plc has announced its plans to acquire a 75 per cent stake in India’s Cambridge Solutions, an international BPO and IT services provider, for some £83 million in a cash-and-shares deal.

UK outsourcing group Xchanging Plc has announced its plans to acquire a 75 per cent stake in India’s Cambridge Solutions, an international BPO and IT services provider, for some £83 million in a cash-and-shares deal.

The deal will be paid for with £45 million in cash with the outstanding balance satisfied with the issue of new Xchanging shares. The acquisition is expected to generate returns in excess of the cost of capital from 2010 onwards.

Cambridge Solutions marks the next step in Xchanging’s development plans to deliver greater scale, broaden its international reach and to grow a number of platforms for future growth.

David Andrews, Xchanging CEO, said: “This is a unique opportunity to accelerate our strategy to create a global business processor at a time when our industry is internationalising.”


The deal will strengthen Xchanging’s market position in the US, bulk up its Indian BPO platform, add a strong Australian business, as well as bring economies of scale.

Cambridge Solutions has provided services to Xchanging Broking services through its Indian operation for the last two years. It has offices across eight countries in four continents. The company is listed on the Bombay, National, Madras and Ahmedabad stock exchanges in India.