DXC Technology receives a takeover offer by a private equity firm

Winds of change are coming at DXC Technology. The popular systems company and solution provider could have started working with consultants after receiving an offer to acquire the companyas reported by the Bloomberg news channel.

At least one private equity firm would be interested in DXC. The news was known after the company canceled on September 1 its attendance at one of the most important events in the sector, the Deutsche Bank Technology Conference 2022 In Las Vegas.

DXC Technology was all set for an investor presentation and a 7.9% rise in the company’s share price. It should be noted that the price of DXC shares after the information published by Bloomberg increased down 1.7% to $27.51 a share. This was down from the $28.11 per share reached the day after he walked out of the conference call.

Originally from Ashburn, Virginia, DXC has achieved a notable role despite her “short” life as such. Since it was formed in 2017 by the merger of the former solutions provider CSC and the Enterprise Services division of Hewlett Packard Enterprise. they did it for drive economies of scale in a part of the technology industry that was being decimated by the cloud.

The name of the company or the investors who have decided to launch the current offer that it would already have on the table is still unknown, it is not the first time that this has happened. Already at the beginning of 2021 he was in talks to be acquired by French IT services company Atos. But, just a month later, in February Atos canceled its offer after DXC stated that the offer was not adequate and that, moreover, it was “lacking in consistency”.

good business results

The latest data known from DXC Technology is from August of this year, when it published the economic results corresponding to the first fiscal quarter of 2023, where its income increased to 3,710 million dollars, 10.5% than in the same quarter of 2022. So did net income during the quarter, up 2.8% to 103 million, a lower growth rate than the 6.8% annual growth in the first fiscal quarter of 2022.

The case of DXC is not unique, IBM’s Global Technology Services division underwent a similar process and decided some time ago to split the business into a separately listed entity, Kyndryl. Infrastructure services are now no longer a drag on Big Blue’s revenue growth.

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