Insurance software business achieved EBITDA of £0.5m in 2013
Xchanging has agreed to buy insurance software business Total Objects for £21m, subject to clearance by the Competition and Markets Authority.
The deal is for an initial cash consideration of £11.5m and up to a further £9.5m is payable in 2015, 2016 and 2017, of which £1.5m is deferred and the balance is subject to business performance.
Total Objects achieved earnings before interest, tax, depreciation and amortisation (EBITDA) of £0.5m over 2013.
Xchanging chief executive Ken Lever said: “Insurance is a core market for our services, and Total Objects will contribute to the further development of our presence in the Binder market as well as providing synergies with our Xuber insurance software. Total Objects has a talented team with a proven track record of product development; it will fit very well with our growing insurance software business.”