DXC Technology Confirms Tender Offer From “Financial Sponsor” – Nearshore Americas

American IT company/BPO DXC Technology is in talks with a “financial sponsor” who would be interested in buying the Virginia-based company.

DXC confirmed that he had been approached, although he did not release the suitor’s name. Reports indicate Baring Private Equityan Asian private equity firm that has several technology and business services companies in its wallet.

Tech companies are becoming increasingly attractive to private equity as rising inflation and a shortage of tech talent reduce the value of their shares.

DXC’s share price, for example, has fallen from $96 per unit to $26 over the past five years, largely due to its high leverage and declining demand for traditional IT infrastructure services. . Its market value has increased from US$24 billion in fiscal year 2018 to US$16.26 billion in fiscal year 2022.

Earlier this year, reports surfaced that French IT giant Atos had made a bid to acquire DXC Technology. The American firm declined the offer, considering that the number offered was too low.

DXC Technology was formed in 2017 from the merger of Computer Science Corp. and the Enterprise Services business of Hewlett Packard Enterprise. It expanded two years later with the acquisition of Luxoft, which employed thousands of people in Europe and the Americas.

Although its IT infrastructure business is bleeding, DXC remains an important service provider for US insurance and aerospace companies.

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