DXC, IT services firm, being shopped for $4.5 billion
The Washington Business Journal reports DXC Technology—the Ashburn-based IT services firm that traces its routes to Hewlett-Packard—is reportedly in talks for an acquisition deal worth up to $4.5 billion.
The potential buyer is a joint venture led by Apollo Global Management and Kyndryl Holdings, an information services provider spun out of IBM. This news has resulted in an 11.5% rise in DXC's shares.
DXC, one of the DC region’s largest publicly traded companies, has struggled to gain its footing in recent years and is separately selling its insurance software business for more than $2 billion. DXC has been on the block before; prior discussions with investors ended in early 2023 due to financing issues, and the firm rejected a $6.7 billion bid from French IT company Atos SE in 2021.
This potential sale comes less than a month after DXC announced plans to cut costs and restructure operations due to the sharp decrease in sales. Despite a 19% decrease in shares year to date and a 29% decrease over the past year, DXC has repurchased about 32% of its outstanding shares since the end of fiscal year 2021, which adds no innovation while also apparently not lifting its stock.
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