Menu
DXC drops $2B to acquire software development specialists

DXC drops $2B to acquire software development specialists

Tech giant targets deep vertical expertise

Mike Lawrie (DXC Technology)

Mike Lawrie (DXC Technology)

Credit: DXC Technology

DXC Technology has unveiled plans to acquire global software development specialists Luxoft to drive digital capabilities across key market verticals.

The transaction, amounting to approximately US$2 billion, will see the technology giant take control of the Switzerland-based company in a deal expected to close by June 2019.

Luxoft provides digital strategy consulting and engineering services for customers across North America, Europe and Asia Pacific, with the acquisition aiming to leveraging bespoke digital engineering capabilities.

Headquartered in Zug, the company achieved US$911 million in revenue over the last four reported quarters, backed by “strong, double-digit” compound annual growth rate over the last three years.

“Luxoft and DXC are highly complementary, and our shared vision of digital transformation makes this strategic combination a great fit for both organisations - as well as enormously beneficial for our clients,” said Mike Lawrie, chairman, president and CEO of DXC Technology.

“Luxoft has a proven track record and expertise in producing measurable business outcomes at-scale for global clients across key industries, including automotive and financial services.”

According to Lawrie, Luxoft will expand DXC’s digital offerings portfolio globally, alongside broadening its presence in "high-growth verticals" such as the financial and automative sectors.

Specifically, Lawrie said the focus of the transaction will be centred around “cross-selling digital services”, as well as expanding into new markets and scaling digital talent.

“The addition of Luxoft accelerates DXC’s growth strategy as we equip the company to meet the digital requirements of our clients today and in the future,” Lawrie added.

Housing around 13,000 staff, Luxoft - founded in 2000 - serves “marquee clients” in every region, with particular depth in European markets.

In the automotive space, the combined company will serve more than 20 manufacturers and OEMs across North America, Europe and Asia Pacific, in addition to half of the top financial institutions in the Americas and Europe.

Terms of the deal will see Luxoft maintain its brand and will continue to be led by Dmitry Loschinin, the company’s current president and CEO, who will report to Lawrie.

“Our success in recent years has been led by our talent and ability to design, develop and deliver truly innovative digital solutions tailored to client business needs,” Loschinin said. “Aligning with DXC presents an exciting opportunity to unlock new value for our people, clients and partners.

"We will gain the scale, resources and market presence to better serve and compete, and to more rapidly realise our vision. As part of DXC, we will preserve Luxoft’s differentiated capabilities and culture while driving growth for the combined company.”

According to Lawrie, shareholders representing approximately 83 per cent of the total voting power of Luxoft have delivered written consents in support of the transaction.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags digitalDXC TechnologyLuxoft

Brand Post

How to become the best IT MSP

This article provides guidance for managed service providers (MSPs) that want to grow their business. It is also useful for any IT service provider looking to move from the break-fix model to managed IT services.

Featured

Slideshows

Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Malwarebytes shoots the breeze with channel, prospects

Malwarebytes shoots the breeze with channel, prospects

A Kumeu, Auckland, winery was the venue for a Malwarebytes event for partner and prospect MSPs - with some straight shooting on the side. The half-day getaway, which featured an archery competition, lunch and wine-tasting aimed at bringing Malwarebytes' local New Zealand and top and prospective MSP partners together to celebrate recent local successes, and discuss the current state of malware in New Zealand. This was also a unique opportunity for local MSPs to learn about how they can get the most out of Malwarebytes' MSP program and offering, as more Kiwi businesses are targeted by malware.

Malwarebytes shoots the breeze with channel, prospects
Show Comments