Unsurprisingly, DXC Technology turned down Atos’ offer to acquire the firm. DXC considered it, USD 10bn, as reported by Reuters, as too low. The company considers it is going through a turn-around. Also, 16 months into the job, DXC’s CEO, Mike Salvino, believed it was too early to sell the Tysons, VA-based firm.
Following a Reuters news release, European IT services vendor Atos confirmed it had submitted to the Board of DXC an unsolicited non-binding offer to acquire the firm. The offer is at a preliminary stage. Reuters estimated Atos’ offer to USD 10bn.
Despite the stock market melt-down, ER&D vendors have continued to make tuck-in acquisitions in the past two weeks. The acquired firms were of small size and not likely to impact the net debt of their new owners. However, should the Covid-19-China-US trade-war-Stock Markets meltdown-oil price crisis degenerate into a recession, we expect suck tuck-in acquisitions to become scarce.
Luxoft’s Automotive and Transportation unit had a stellar performance in Q3 FY19, with revenue growth of +56%.
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We have written two blogs about Luxoft’s ERD services capabilities, with this one focusing on automotive engineering.
NelsonHall has published a new blog about this week’s big news: the acquisition by DXC Technology of Luxoft.
DXC, the third largest IT service vendor is to acquire Luxoft, a Central and European delivery vendor providing IT and ER&D services. DXC is offering $2bn for Luxoft, which has been struggling this year, being impacted by its high client concentration.