Insurance software provider Ebix Inc. is contemplating a $685 million offer for U.K. rival Xchanging plc.

Ebix disclosed on Nov. 16 that it sent a letter to Xchanging’s board of directors outlining its proposed all-cash acquisition.

Ebix sells on-demand software and e-commerce services to the insurance, financial and healthcare industries. While it is based in Georgia, in the U.S., it also has a global presence with offices in Brazil, Singapore, Australia, the U.K., New Zealand, India and Canada.

Xchanging, launched in 1999, has a similar global reach for products and services for industries including insurance and financial services such as IT outsourcing, software and application management.

Ebix President and CEO Robin Raina said such an acquisition, if it moves forward, would stem from synergy and expanded growth possibilities.

“We see substantial synergies, economies of scale and growth potential for the combined business,” Raina said in prepared remarks. “Our interest in making an offer for Xchanging plc is borne out of our believe that a combination of the two companies could substantially and immediately accretive to Ebix’s [earnings per share] while also adhering to our other stringent criteria. We wanted to ensure that our shareholders were aware of this potential opportunity.”

Ebix said such an offer would be subject to due diligence, regulatory and other closing conditions. The company added that a specific offer might vary from the initially disclosed price, based on various factors.

Source: Ebix