DXC confirms talks with potential buyer

11 months ago 92

DXC Technology Tuesday confirmed that it is in discussions with a “financial sponsor” that could lead to an acquisition following multiple reports in recent days that private equity firms have been sniffing around the global systems integrator.

DXC said in a statement that it has been approached by a potential suitor and that the two are sharing information.

DXC, in the statement, said “management has been approached by a financial sponsor regarding a potential acquisition of the company. Management remains focused on the company’s transformation journey. Consistent with its fiduciary responsibility to maximize shareholder value, the company is engaged in preliminary discussions and is sharing information. However, to date no formal proposal has been received. There are no assurances that any proposal will be received or determined to be adequate by the board of directors.”

DXC’s statement was released after Bloomberg reported earlier that day that Baring Private Equity Asia Ltd. had made a takeover approach to DXC, citing unnamed people familiar with the matter.

Rumors of private equity interest in DXC have been reported for several weeks. Bloomberg on September 21, for instance, reported that at least one private equity company has approached DXC to discuss a possible acquisition.

Online news site Betaville September 28 reported that private equity company KKR & Co. is a potential suitor. StreetInsider.com September 29 reported that people close to the matter have said KKR is considering a price of about $45 per share, causing DXC share prices that day to spike from $22.73 to $25.89 per share.

DXC did not respond to a CRN US request for further information by press time. The company in its statement said it “does not intend to comment further on market rumours or developments unless it deems additional disclosure to be appropriate or required.”

DXC was formed in 2017 by the merger of former solution provider CSC and Hewlett Packard Enterprise’s Enterprise Services division.

This article originally appeared at crn.com

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