Abstract
Steria-Xansa is a comprehensive M&A case. Steria, one of the 10 biggest European actors of IT services, and Xansa, an IT British operator specialising in business process outsourcing have announced their integration project through a friendly bid of Xansa. The transaction took place in July 2007. This case: (1) highlights the impact of an M&A deal on several parameters: EPS, capital structure, value creation, cost of capital; (2) examines the alternative means of financing an acquisition; (3) illustrates how to examine convertible bonds; (4) examines the dilution effect and the value of the subscription rights of capital increases; and (5) sets out practise techniques of financial analysis and corporate valuation.