(Reuters) - Outsourcing companies Xchanging Plc (>> Xchanging Plc) and Capita Plc (>> Capita PLC) said they had reached an agreement on terms of a recommended cash offer of 160 pence per share, valuing Xchanging at 412 million pounds.

The offer represents a discount of 2.4 percent to Xchanging stock's closing price on Tuesday. Capita's first proposal in August was 140 pence per share.

Capita and Xchanging said in a joint statement that the offer was final unless there was a firm intention by a third party to make an offer.

Talks were ongoing with U.S.-based private equity firm Apollo Global Management LLC (>> Apollo Global Management LLC) for a potential offer at 170 pence per share in cash, Xchanging said separately.

Xchanging, which offers services ranging from back-office invoice processing to insurance claims settlement, said last week that it had received competing takeover offers from Capita and Apollo Global.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Gopakumar Warrier)

Stocks treated in this article : Xchanging Plc, Capita PLC, Apollo Global Management LLC