US-listed Computer Sciences Corporation (CSC) is the new favourite to acquire Xchanging, after the UK-based insurance outsourcing business endorsed its offer – but other bidders including Ebix are still in play.

The board endorsement of £480 million ($1 billion) in cash came after CSC improved on its previous offer of £421 million ($878 million).

Xchanging previously supported a £412 million ($859 million) bid from larger UK rival Capita, despite higher offers from other parties, including US insurance technology specialist Ebix, which offered £450 million ($939 million).

The battle for the money-losing business appears far from over, because Ebix says it has a “continued interest in making an offer” and will provide an update in due course.

Capita says its will not revise its cash offer of £1.60 ($3.33) per share.

Barring any last-minute surprise bids, CSC and Xchanging expect to close the transaction in the next six months.

CSC says the deal will give it instant access to the UK insurance sector, where there is strong demand for efficient business processing platforms.

“CSC leads clients on their digital transformation journeys,” President and CEO Mike Lawrie said. “Xchanging’s capabilities and experience in the commercial insurance market would complement CSC’s global insurance presence in software, outsourcing and services.”

Xchanging made a net loss of £41.1 million ($85.7 million) in the half-year to June.

It has hired former Hewlett-Packard executive Craig Wilson to replace CEO Ken Lever on January 1.