Xchanging launches £500m float

General Atlantic portfolio company Xchanging, an IT outsourcing business, has confirmed plans for a London listing that could value it at £500 million.

Xchanging, a UK-based IT outsourcing firm owned by private equity group General Atlantic, has confirmed plans for a London Stock Exchange flotation that could value the company at about £500 million (€738 million; $985 million).

In a regulatory news statement, Xchanging said it had appointed Citigroup and UBS as joint bookrunners to arrange the offering, which is likely to complete towards the end of next month.

The company plans to raise about £150 million through the flotation, according to Reuters, about half of which will be spent on acquisitions and business development. It is likely to have a subsequent market capitalisation of about £500 million.

General Atlantic, which has owned a 54 percent stake in Xchanging since its formation in 1998, will retain a “significant shareholding” in the company post-flotation, it said.

Xchanging was set up to provide the back office function of insurer Lloyd’s of London and now also provides similar services to large corporates like AON, BAE Systems, Alliance Boots, United Biscuits and Deutsche Bank. It is one of the few western business process outsourcing firms to have survived the fierce competition from Indian companies.

Last year the business recorded profits of £17.1 million last year on revenues of £393.5 million. The firm said it planned to continue its growth through product development, expansion into new industries and geographies, and selective acquisitions.