Atos wants to buy DXC for $ 10 billion

Clarifying that this is exclusive information, the source announced the application of the French company Atos to purchase the American competitor DXC Technology.

This week the French firm approached DXC with a formal $ 10 billion friendly takeover bid. Reuters learned about this from two sources who wished to remain anonymous.

DXC confirmed receipt of the offer, noting that it was previously unaware of Atos’s interest. The proposal was described as “provisional and non-binding”. The DXC Board of Directors intends to consider the proposal.

Now is the time to remind you that DXC Technology is an American IT company created in 2017 by combining the assets of Computer Sciences and a specialized division of Hewlett Packard Enterprise. She specializes in information technology services including consulting, outsourcing, maintenance, and systems integration.

Founded in 1997, Atos also specializes in systems integration, IT consulting, business process outsourcing, cloud computing, security and big data management solutions, and server manufacturing. The DXC acquisition is expected to expand Atos’ presence in the US by providing access to a wide range of B2B customers and products, including analytics and cloud applications, and IT outsourcing services. If successful, it will become the largest in the history of the company. Atos’ largest acquisition so far is the $ 3.4 billion acquisition of US IT services provider Syntel in 2018.

For DXC, which has a market value of $ 6.7 billion, it is having a hard time. In 2020, its revenue fell to $ 19.6 billion (in 2019 it was $ 20.75 billion), and its total debt simultaneously increased from $ 7.4 billion to $ 9.9 billion.

On Wednesday, DXC unveiled plans to sell its Fixnetix division, which provides services to investment banks, hedge funds and stock exchanges. Options Technology is named the buyer. The amount of the deal was not disclosed.

Last year, DXC sold its medical technology business to private equity firm Veritas Capital for $ 5 billion.