Xchanging has acquired technology provider
RebusIS for an undisclosed sum, believed to be in the region of £40m, as tipped by Insurance Times in October 2003.
The combined group will have revenues of £196m and will employ 1,800 people in the UK, US, Bermuda, Continental Europe, India, Malaysia and Thailand.
RebusIS was formerly a joint venture by two leading private equity firms, General Atlantic Partners and Warburg Pincus.
General Atlantic Partners, a major shareholder in Xchanging, was a significant shareholder in RebusIS.
RebusIS reported a pre-tax profit of £1.8m for the year ended 31 March 2003, compared to a loss of £8m the year before. Revenue for the same period was £44.3m, down from £49.4m the previous year.
Xchanging finance director Richard Houghton would not rule out redundancies at Xchanging and RebusIS as a result of the acquisition, but said they were "unlikely".
Houghton added that Xchanging hoped the acquisition would increase access to broker clients.
"RebusIS has a strong base in brokers. We'd like to broaden our service offering to the broker market," Houghton said.
RebusIS chief executive Robert Gogel said: "Being part of a larger group will allow for increased spending and the development of the current product portfolio.
"Our employees will benefit from extended opportunities with Xchanging."
