LONDON (Dow Jones)--French information technology services company GroupeSteria SCA (7291.FR) has mandated BNP Paribas to arrange the financing for itsacquisition of U.K.-based outsourcing and technology company Xansa PLC (XAN.LN),the bank confirmed Monday. Approximately 50% of the acquisition financing willin be in the form of a bridge loan, which will be repaid from the proceeds of asubsequent rights issue, Steria said in a statement at the end of July.
The overall size and details of the financing have yet to be revealed.
"The size of the financing will depend on existing and ongoing requirements,"a person familiar with the situation said.
Steria has offered Xansa shareholders' 130 pence a share valuing the companyat GBP472 million. The offer represents a 61.3% premium to Xansa's monthlyaverage share price of 80.6 pence, in the month ending July 26.
Steria is looking to create a leading European information technology servicescompany through the takeover of Xansa . Post-acquisition, the combined company'sincreased scale and reach will enable it to compete more effectively in businesswith larger customers.
The acquisition is expected to deliver total pretax synergies of approximately EUR24 million in 2008, EUR49 million in 2009 and EUR53 million from 2010onwards, Steria said.
-By Carol Dean, Dow Jones Newswires; 44 (0) 207 842 9306; carol.dean@dowjones.com
(END) Dow Jones Newswires 08-06-07 0721ET Copyright (c) 2007 Dow Jones & Company, Inc.
