New York-listed Computer Sciences Corporation (CSC) has put in a last-minute offer of £421 million ($900.45 million) for UK-based insurance outsourcing company Xchanging.

CSC’S cash bid of £1.70 ($3.63) per share trumps that of Capita, which offered £1.60 ($3.42) and had emerged as the favourite to acquire its smaller rival after US private equity group Apollo Global Management withdrew its offer.

Xchanging says discussions with CSC about its last-minute bid are ongoing.

Capita and Apollo had been locked in a fierce bidding war for money-losing Xchanging, which has substantial business in the Australian market.

Xchanging’s board last month urged shareholders to accept Capita’s bid because Apollo was not ready to proceed with its offer of £1.70 ($3.63) per share.

It says Capita has the resources to take the company further.

Xchanging made a net loss of £41.1 million ($87.65 million) in the half-year to June 30, down from a net profit of £24.2 million ($51.61 million) in the corresponding period last year.

It subsequently installed a new CEO, former Hewlett-Packard executive Craig Wilson, who will take over from Ken Lever on January 1.