XBP Europe (XBP) said Tuesday it signed an exclusive, non-binding letter of intent with Exela Technologies to acquire Exela Technologies BPA, a provider of business automation solutions.

The closing of the acquisition will be subject to BPA completing a corporate reorganization, which is expected to create a sustainable capital structure with a "substantially deleveraged" balance sheet, XBP said.

If completed, the acquisition will expand XBP Europe's revenue to more than $1 billion from $145 million on a pro forma basis for the twelve months ending Sept. 30, 2024, the company said.

The companies have agreed to negotiate definitive agreements, complete due diligence, undertake necessary regulatory approvals, and seek any necessary approvals, including from XBP Europe's shareholders, XBP said.

XBP shares were over 5% higher in recent trading.

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