The board of Xansa, the British outsourcer which has 5,000 staff in India, has agreed to be bought by French system integrator Steria for £472m.
Steria wants to buy the business process outsourcer to move into the top 10 IT services firms in Europe, generating revenues of €1.8bn (£1.2bn). Steria generated €1.3bn in revenues last year.
The French firm hoped to be able to attract larger clients, and would be particularly strong in the public sector and among financial services businesses, though it will also have clients in other sectors including broadcasting where Xansa serves the BBC.
Xansa’s revenues for the same period were £380m. In the last year, it has won a stream of UK outsourcing contracts and contract extensions including Thames Water, and Tesco which extended an applications development and support for three years in an £18m deal.
Other contract wins include the Co-operative Financial Services (CFS), which extended its 12-year outsourcing contract in a deal expected to be worth up to £100m over five years, and the NHS staffing agency which outsourced finance and payroll in a six-year deal is worth £19m. Drinks company Threshers in March signed a five-year £8m IT outsourcing deal for Xansa to manage its central IT systems.
The company was founded in 1962 by Dame Stephanie Shirley, who was an early champion of women in IT, pioneering new work practices and in doing so creating new opportunities for women in technology.
Elswehere in the IT services sector today, 30 July, Dutch telecoms firm KPN has agreed to buy Getronics for €766m (£517m).