CSC lodges $428m bid for UXC

CSC lodges $428m bid for UXC

UXC shareholders will receive cash payments of $1.28 per share

UXC's Cris Nicolli

UXC's Cris Nicolli

Global IT services provider, CSC, has put forward a proposal to acquire ASX-listed UXC (ASX:UXC) for about $428 million.

Under the agreement, UXC shareholders will receive cash payments of $1.28 per share, comprising $1.26 cash per share and the payment of franked dividend of $0.02 per share for the half year ending December 31. Based on 340 million shares of UXC outstanding, the purchase price is about $428 million.

The FY15 final dividend of $0.03.6 per share payable in October will be paid in the normal course of business.

The UXC board said it was in the interest of shareholders to engage further with CSC, which has been granted a five-week period of exclusive due diligence.

If the acquisition goes to plan, it will be finalised by February.

The proposal is also subject to a scheme implementation agreement, board and court approvals.

UXC is Australia's largest independent and publicly owned IT services company focused on medium to large entities in the private and public sectors across Australia, New Zealand, Canada, USA and operations across Asia. It reported fiscal 2015 annual revenues of $686 million has about 3000 employees.

CSC has about 70,000 employees globally and revenue of about $US11.7 billion for the 12 months ending July 3.

The UXC Group has 12 companies under its umbrella including UXC Connect, UXC Oxygen, UXC Eclipse, UXC Consulting and Telsyte.

More to follow.

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