By Ramone Param, Director, Equiteq
- Major deals profiled include DXC’s acquisition of Luxoft, Bain Capital’s acquisition of Brillio and IBM’s reported acquisition of T-Systems’ mainframe service business.
- Equiteq advised Orbium on its sale to Accenture and Cervello on its sale to A.T. Kearney.
- The Equiteq Knowledge Economy Share Price Index experienced rises along with broader market indices.
DXC’s transformational acquisition of Luxoft builds new digital capabilities and sector vertical expertise.
Target: Luxoft is a global provider of technology solutions, including software development services.
Buyer: DXC Technology is a US-headquartered global IT services firm.
Deal Value: $2bn (2.2x TTM Sep-18 revenue)
DXC Technology was formed in 2016 following the merger of HPE’s spin-off of most of its enterprise services business with Computer Sciences Corporation (CSC). Since its formation, DXC has been highly acquisitive and has announced notable deals across technology and consulting, including the acquisitions of:
- Tribridge and Logicalis SMC in 2017; and
- System Partners, Molina Medicaid Solutions and argodesign in 2018.
DXC’s acquisition of Luxoft is a transformational deal for the firm. It provides DXC with important capabilities in outsourced digital engineering, cloud and devops. It also enables DXC to deepen its capabilities for clients in the automotive and financial services sector verticals, particularly in Europe. At the end of January, DXC also announced its acquisition of EG A/S, a Microsoft consulting firm with a strong presence across the Nordics.Continue reading