Atos has announced that it has withdrawn its bid for DXC. The two companies were unable to reach an agreement. Atos came out of nowhere last month with a bid for DXC.
“Further to the statement issued by the company on January 7, 2021, the board of directors of Atos has unanimously determined not to pursue a potential transaction with DXC Technology,” Atos said in a statement.
Offer not high enough
DXC did consider the offer but concluded that the offer was not high enough. “Consistent with its fiduciary duties, the DXC board of directors carefully evaluated the proposal, together with its financial and legal advisors. The offer was determined to be inadequate and lacking certainty in light of the value the board believes DXC can create on a standalone basis by executing our transformation journey”, the company says.
“After sharing certain high-level information in order to help Atos understand why the board believes the proposal undervalued DXC, Atos and DXC today agreed to discontinue further discussions.”
In January, French company Atos suddenly made a 10 billion dollar (8.3 billion euros) bid for its US rival DXC Technology. If DXC had accepted the offer, it would have been Atos’ largest acquisition ever. DXC was not aware in advance that Atos was interested in a takeover.
Atos’ aim was to use the takeover to become a superpower in the field of digital services. Both companies are active in the world of IT consultancy, but serve different markets. DXC seemed to be struggling to keep up with competitive market prices, but seems to have a plan to get the wind back in its sails.