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The global system integrator (SI) market is often characterised by its stability, but a move by Atos to acquire DXC Technology has sent ripples through the SI world.
DXC Technology confirmed that it had received an unsolicited offer from Atos and would be looking at the bid, which, according to some reports, is in the region of $10bn, well above the current market value of $7.4bn.
“The DXC Technology board of directors, consistent with its fiduciary responsibilities, will be evaluating the proposal,” the company said. “Prior to receiving this proposal on 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.”
On the other side, Atos was reported to be pursuing DXC in a friendly manner and viewed the opportunity to combine operations as a way to build a tech services powerhouse.
“Following recent market rumours about a potential transaction involving Atos, the company confirms that it has approached DXC Technology concerning a potential friendly transaction between the two groups in order to create a digital services leader benefiting from global scale, talent and innovation,” the firm stated.
“In assessing this opportunity, Atos will apply the financial discipline which it has always followed in its acquisition strategy. There can be no certainty at this stage that this approach will result in any agreement or transaction.”
If the acquisition went ahead, it would be Atos’s largest deal, but not out of character for a firm that made 12 acquisitions in 2020 alone, including most recently, managed security services player Motiv.
For DXC, it would also potentially make sense, given the journey the firm has been on since the arrival of CEO Mike Salvino, who has spent much of his tenure so far working on improving the firm’s debt position and casting an eye over its assets, with the decision made last year to sell off its UK healthcare operation.
DXC has been around since 2017, when it was created by the combination of US IT services giants CSC and HP Enterprise Services, with operations supporting customers in 70 countries.