Cavendish

Cavendish sells xit2 Limited to MDA

Xit2 is the UK's leading provider of electronic exchange solutions to lenders and surveyors

Cavendish Corporate Finance has advised the four shareholders of xit2 Limited on the disposal of their business for £12.5 million. The xit2 business was sold, through an auction process to MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions.

Located near Oxford (west of London), xit2 derives its revenues predominantly from its Valuation Exchange, which provides a growing number of lenders with an electronic information exchange solution to manage their outsourced home valuations. These home valuations are conducted by a large number of certified home surveyors located throughout England and Wales. Today about 6,500 home surveyors are paid subscribers of the Valuation Exchange, and over 25% of all home surveys ordered by lenders flow through the Valuation Exchange.

In addition to the Valuation Exchange, xit2 is operating a Repossession Exchange, which electronically connects and coordinates all parties involved in a home repossession, as well as a Conveyancing Portal, which links lenders to conveyancing solicitors to process the refinancing of mortgages. The company is also developing several electronic exchange solutions related to the Home Information Pack (HIP), which will become mandatory by June 2007.

Paul Duckworth, shareholder and CEO of xit2, commented ''We appointed Cavendish to manage the sales process after we had received a number of unsolicited approaches for the business. As well as taking over the negotiations with such parties, Cavendish helped us to identify a number of other parties who were also interested in making an acquisition. The Cavendish process was well structured and the team used their expertise in selling businesses to ensure that the shareholders were presented with an attractive solution for all shareholders''.

He continued: ''MDA is an internationally known and respected multinational company which specializes in leading edge property information solutions for government and business customers worldwide; in the UK MDA is already a leading provider of authoritative property search information, and is one of the very first to offer an electronic precursor HIP solution; this relationship with MDA will provide us with the framework and resources required to maximize our expansion plans once the HIP market has become a reality next year.''

[Paul Herman], who lead the deal for Cavendish commented: ''We are delighted to have found such an excellent home for the xit2 business. As well as delivering a strong price for the shareholders, it was important for us to complete the transaction with a party that has the appetite and ability to add value to the xit2 business going forward. Cavendish were introduced to the transaction after the shareholders had received a number of un-solicited approaches. This is a situation with which we are very familiar and we are delighted that we have been able to increase the ultimate transaction value and secure a deal with a party that met all of the shareholders' requirements.''

Contacts:
Paul Duckworth, CEO of xit2 01608 813 800
[Paul Herman], Director, M&A at Cavendish 020 7908 6027

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