decor decor
"The way to get started is to quit talking and begin doing."

-Walt Disney

Atos SE Confirms Unsolicited Bid for DXC

Financial Information
  • Not Disclosed
Transaction Update
  • French IT Services company Atos SE (XPAR:ATO) confirmed Thursday that it had made a bid to acquire US IT Services giant DXC (NYSE:DXC) Wednesday night.
  • Valuation of the offer was not disclosed, but the offer was reported to be more than $10 billion including debt (DXC’s debt rose to $9.9 billion in 2020 from $7.4 billion in 2019).
  • DXC stock closed Thursday trading up 9.3 percent while Atos stock dropped 13.1 percent.
martinwolf Analysis
  • Size Matters: Atos’ logic behind this transaction is simple: the easiest way to generate profitability is by rationalizing costs. DXC and Atos are both global services players with significant overlap — which means there is ample opportunity to save money as a combined organization.
  • Not Quite Plug and Play: DXC, formed in 2017 as a consolidation of Computer Sciences Corp (CSC) and HP Enterprise’s tech-services business, has been an active buyer and seller. But a consequence of this patchwork history is that the company does not have one coherent culture. Should this proceed to a transaction, expect a significant integration process.
  • Carving Out a Focus: Atos and DXC are both focused largely, but not exclusively, on old-line services. This transaction doesn’t push the envelope –one reason it’s not surprising Atos’ share price dropped — but that does not mean it’s a bad move for shareholders. One thing for sure: it will be a lot of work.
The potential transaction was first reported in Reuters.
martinwolf was not the advisor in this transaction.
previous post Back to Articles next post

18 Oct 2021

CDW To Acquire Sirius Computer Solutions

Financial Information ($USD) Enterprise Value: $2.5 Billion EV/REV: 1.23x Transaction Details CDW Corporation today announced it has entered into a definitive agreement to acquire Sirius Computer Solutions, Inc from an affiliate of Clayton, Dubilier & Rice for $2.5 billion in cash. Sirius, a leading provider of secure, mission-critical technology-based solutions, generated 2020 net sales of $2.04 billion with approximately 3,900...

29 Sep 2021

H.I.G. Capital Announces Sale of Trace3

Financial Information Not Disclosed Transaction Details H.I.G. Capital announced that one of its affiliates has entered into a definitive agreement to sell Trace3, a premier provider of IT solutions and services, to affiliates of American Securities. Financial terms of the transaction are not being disclosed, but the press release cites Trace3 revenue of $1.4 billion....

02 Aug 2021

TowerBrook Capital Partners Makes Strategic Investment in EisnerAmper LLP

Transaction Details TowerBrook Capital Partners, an international investment management firm, has made a strategic investment in EisnerAmper, one of the largest professional services firms in the world, offering premier accounting, tax and business advisory services. The firm will now operate two divisions: EisnerAmper LLP, a licensed CPA firm, will provide attest services; and Eisner Advisory Group LLC,...