Ebix has entered the race to own UK-based insurance outsourcing company Xchanging, trumping its rivals with a takeover bid worth £450 million ($961 million).

The US insurance technology specialist announced its cash offer of 175 pence ($3.73) per share last week.

This dwarfs offers from London-based Capita and New York-listed Computer Sciences Corporation, which bid 160 pence ($3.41) and 170 pence ($3.62) respectively.

Xchanging has significant claims services operations in Australia, and Ebix is the local insurance industry’s largest technology partner.

“We see substantial synergies, economies of scale and growth potential for the combined business,” Ebix President and CEO Robin Raina said.

“Our interest in making an offer for Xchanging is born out of our belief that a combination of the two companies could be substantially and immediately accretive to Ebix’s [profitability], while also adhering to our other stringent criteria.”

Earlier this month, when third-quarter results were announced, Mr Raina revealed the company is considering a number of acquisitions.

Ebix made a net profit of $US20.2 million ($28.2 million) in the three months to September 30, up 12% on the corresponding period last year.

Under British takeover laws Ebix must announce by December 9 whether it will proceed with a firm offer.

Xchanging has begun talks with Ebix but says “there can be no certainty” a firm offer will follow.

The Xchanging board has endorsed the bid from larger rival Capita, and has not altered that position despite other parties floating higher offers.

Xchanging has appointed former Hewlett-Packard executive Craig Wilson as its new CEO after reporting a net loss of £41.1 million ($87.7 million) in the half-year to June 30, down from a net profit of £24.2 million ($51.6 million) in the corresponding period last year.

Mr Wilson will take over from Ken Lever on January 1.