DXC Technology confirmed that it is discussing a possible acquisition with a financial party. The details of the talks were not disclosed.
Last month, Bloomberg reported that a private investment firm was interested in acquiring DXC Technology. The IT integrator reportedly engaged financial advisers, but the organization denied the possibility of an imminent acquisition at the time. This has changed since. DXC Technology confirmed to shareholders that it is in early acquisition talks with a “financial sponsor”.
Shareholders first
DXC Technology’s board of directors said that the reason for these talks is that the organization has to consider the interest of shareholders at all times. No offer has yet been made, and the company emphasized that the talks may amount to nothing.
The identity of the party in question is unconfirmed. According to Bloomberg, the mysterious “financial sponsor” is Baring Private Equity Asia, a private investment firm. The organization was acquired by EQT Partners earlier this year.
IT integrator acquisitions
Integrators and IT service providers like DXC Technology have been popular acquisition targets for private investment firms as of late. Acquisition amounts are low as the market segment is under pressure due to difficult economic conditions and a spike in cloud migrations.
2 hours ago
