Xchanging surges as it agrees to Computer Sciences offer

Xchanging shares surged on Wednesday after the business outsourcer said its board intends to unanimously recommend the cash offer from technology consulting company Computer Sciences Corp and withdraw its recommendation of the offer from London-listed peer Capita.

The CSC offer price of 190p per share in cash values Xchanging at a premium of 19% to the Capita offer price.

“In evaluating the CSC offer, the board of Xchanging has considered various aspects of the CSC offer, including valuation, transaction timing and execution risk, and considers the CSC offer to represent a superior offer for Xchanging shareholders, as compared to other offers,” the company said.

Xchanging said shareholders that had previously accepted the Capita offer can now withdraw their acceptances.

At 0848 GMT, Xchanging shares were up 9% to 191.50p.