Atos makes “unsolicited” $10B bid to buy DXC
- 08 January, 2021 08:17
Mike Salvino (CEO - DXC)
Atos has made a surprise and unexpected bid to acquire DXC Technology in a reported $10 billion deal, a move which has been labelled as “unsolicited” from the industry rival.
Following heightened media speculation that the French-based business was preparing an out-of-the-blue approach, the technology giant confirmed the potential “friendly transaction” via an official media statement. The move is shaped by a desire to create a "Digital Services Leader benefitting from global scale, talent and innovation”, and would represent Atos’ largest acquisition if finalised.
“In assessing this opportunity, Atos will apply the financial discipline which it has always followed in its acquisition strategy,” a company statement read. “There can be no certainty at this stage that this approach will result in any agreement or transaction.”
Meanwhile, DXC also moved to confirm the approach, cited as an “unsolicited, preliminary and non-binding proposal” to acquire all company shares with the board of directors expected to evaluate the proposal in due course.
“Prior to receiving this proposal Wednesday night, DXC Technology had no knowledge of any such interest from Atos,” the company stated. “We remain focused on delivering for our customers, people and shareholders as we execute our transformation journey.”
In July 2020, DXC unveiled plans to merge operations in Asia with Australia and New Zealand, forming a combined business entity across Asia Pacific.
As revealed by Channel Asia, the new-look regional organisation is now led by Seelan Nayagam, who held trans-Tasman responsibilities since 2014. Meanwhile, Koushik Radhakrishnan - the previous leader of Asia - assumed a US-based role driving global strategic transformation at the technology provider.
According to DXC - when speaking at the time of the announcement - the move was motivated by a desire to leverage the “strengths and scale” of both employees and technology capabilities across the region, in a bid to better meet customer demand.