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SANTA MONICA/LONDON - XBP Europe Holdings, Inc. (NASDAQ:XBP) announced today it has completed its acquisition of Exela Technologies BPA, LLC, creating a combined entity with over $900 million in annual revenue that will operate under the new name XBP Global Holdings, Inc. The deal comes as XBP, currently valued at $58.54 million in market capitalization according to InvestingPro, seeks to strengthen its market position despite recent challenges.
The transaction involved XBP Europe issuing approximately 81.8 million new shares of common stock, eliminating $1.1 billion of BPA’s secured debt under a court-approved reorganization plan, with shares valued at $4.98 each. Following this restructuring, BPA and its subsidiaries have successfully emerged from Chapter 11 bankruptcy proceedings. The deal’s completion comes at a critical time, as InvestingPro data shows XBP faces liquidity challenges with a current ratio of 0.61, indicating short-term obligations exceed liquid assets.
The newly formed XBP Global will employ approximately 11,000 people across 19 countries, serving more than 2,500 clients, including over 60 Fortune 100 companies.
"This development reflects our ambition to grow as a truly global technology and services powerhouse – a company with both regional strengths and a clear international identity," said Andrej Jonovic, CEO, according to the company’s press release.
The acquisition has resulted in a trailing Net Debt-to-Adjusted EBITDA ratio of approximately 3.5x for the combined company. XBP Global’s ownership structure is now more diversified with a broader base of institutional shareholders and an enhanced corporate governance framework. Recent InvestingPro analysis indicates the company’s overall financial health score remains weak, with last twelve months EBITDA at $2.42 million. Get access to 6 more exclusive ProTips and comprehensive financial metrics with InvestingPro.
The company states it has made investments in artificial intelligence, deploying AI-powered workflow solutions across sectors including healthcare, banking, and the public sector.
XBP Global will file a Form 8-K to provide additional transaction details, with key aspects already disclosed in previously filed reports, according to the company statement.
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