DXC Technology Confirms Acquisition Proposal from Atos
DXC Technology confirmed that it received an unsolicited, preliminary and non-binding proposal from Atos SE Wednesday night to acquire all DXC Technology shares.
The company said in statement, “The DXC Technology board of directors, consistent with its fiduciary responsibilities, will be evaluating the proposal. Prior to receiving this proposal Wednesday night, DXC Technology had no knowledge of any such interest from Atos. We remain focused on delivering for our customers, people and shareholders as we execute our transformation journey.”
Earlier this week, reporting by Reuters broke the news of potential talks between the two companies, and yesterday Paris-listed Atos confirmed that it has taken the step to initiate “a potential friendly transaction” with DXC Technology to “create a digital services leader benefitting from global scale, talent and innovation.”
Atos was quick to add that “talks are in very early stages” and as a result “there can be no certainty at this stage that this approach will result in any agreement or transaction.” DXC Technology has since confirmed the bid, stating that it has received an “unsolicited, preliminary and non-binding proposal to buy all of its shares.”
If the deal would go through, it would add nearly 140,000 employees to its headcount of 110,000, lifting its total to around 250,000 staff globally, significantly closing the gap with French-origin rival Capgemini, which currently has 270,000 staff on its payroll.
DXC Technology was formed in 2017 from the merger of Computer Sciences Corporation and the bulk of Hewlett Packard Enterprise’s tech-services business, and is currently valued at about $6.7 billion. The IT services group has 6,000 customers across 70 countries. Atos has operations in 75+ countries, and generated revenues of €12 billion in its latest financial year.
