UK's Xchanging to buy Data Integration for about £9 million

By Srikanth Srinivasa: Subscribe to Srikanth's

June 21, 2010 7:07 AM EDT

British outsourcing group Xchanging Plc on Monday agreed to buy privately-owned Data Integration Ltd, a networking, security and communication technology provider in the UK for about £9 million in cash.

The company said it will make a guaranteed payment of £6.5 million in cash over a two-year period, with target earnings of about £2.5 million, subject to Data Integration (DI) delivering operating profit targets.

Xchanging, whose clients include defence group BAE Systems, Deutsche Bank and pharmacy chain Boots, said the deal will strengthen its technology capabilities in network managed services and establish a reseller platform.

The deal will also bring a strategic customer base in the UK through its existing network managed service contracts, the company said in a statement.

Data Integration, which specialises in network security, application optimisation, mobility solutions, high performance networks, IP telephony and open access networks, employs 56 people, and has been Xchanging's preferred network partner for the last 24 months.

Follow us

Data Integration reported revenue of £14.5 million for the year to March 31, 2010.

"We see an exciting future for us together as BPO services are increasingly delivered through cloud computing-based technologies. Xchanging and DI have already created this electronic managed service for claims handling with the London insurance market - a leading example of the power of new generation technologies in business processing, " said chief executive David Andrews in a statement.

Xchanging had said in April that it expects to meet full-year forecasts and that its results will be weighted to the second half.

Shares of Xchanging closed flat at 207 pence on Friday on the London Stock Exchange.

This article is copyrighted by International Business Times, the business news leader
Sponsor Link:

We recommend

News From Partners

More from global_markets

Join the Conversation

Popular Multimedia

IBTimes TV
More

73 yr Old Becomes Oldest Woman to Climb Mount Everest

Most Viewed

1 2 3
  1. IMG TXT
    Video of Parents Locking Child in Washing Machine Goes Viral
  2. IMG TXT
    Police Use Batons Against Protesters, Including Women, in India
  3. IMG TXT
    Fired for Being Too Busty, Lingerie Temp Will Sue
  1. IMG TXT
    Jaguar Luxury Sedan XJ Ultimate Wows Chinese Crowd
  2. IMG TXT
    Facebook Shares Drop Sharply Again, Leaving More Unanswered Questions
  3. IMG TXT
    World Bank Forecasts Lower Growth For China in 2012
  1. IMG TXT
    SpaceX Dragon Flies past the International Space Station
  2. IMG TXT
    Introducing the World’s Richest Woman Gina Rinehart
  3. IMG TXT
    Wall Street Rebounds as Apple Gains and Investors Dump Facebook
Global Prenuers
Most Read
  1. Wall Street scores weekly gains, but sags for the day
  2. Wall Street slips ahead of long holiday weekend
  3. Wall Street to open lower on euro zone concerns
  4. Dow dips, Nasdaq and S&P up before long weekend
  5. Wall Street flat ahead of long weekend

Global Markets
Existing Home Sales Jump, World Banks Lowers China Forecast, Euro Prepares for Greek Exit

Recommended for you
Close
  1. Wall Street scores weekly gains, but sags for the dayU.S. stocks ended their first positive week in four with a down day on Friday as investors were reluctant to buy going into a long weekend, with uncertainty still swirling around Europe.
  2. Wall Street slips ahead of long holiday weekendStocks slid into the close on Friday as traders, wary of the risks posed by Europe's debt crisis, closed out positions ahead ...