DXC in talks with Asian buyout firm
No formal proposal received
DXC Technology Co. and Baring Private Equity Asia Ltd. are in talks after the Asian buyout firm approached the Ashburn-based Fortune 500 information technology services firm with a potential takeover, Bloomberg reported Tuesday.
DXC has been working with advisers after receiving interest from a private equity firm in late September and said in a statement Tuesday that the company was “approached by a financial sponsor regarding a potential acquisition of the company.”
Baring Private Equity Asia Ltd. representatives did not immediately respond to an email from Virginia Business. The company is being acquired by Swedish investment firm EQT AB, according to both companies.
“Consistent with its fiduciary responsibility to maximize shareholder value, the company is engaged in preliminary discussions and is sharing information,” DXC’s statement said, adding that no formal proposal has been received and there were were no promises that one would be made or determined adequate by the company’s board of directors.
Seeking Alpha reported late last month that New York-based investment firm KKR and Co. Inc. was interested in DXC.
In 2021, the Fortune 500 firm’s CEO, president and chairman, Mike Salvino, was Virginia’s highest-paid CEO, with his pay totaling $28.716 million, a 32% increase over 2020. The company, however, posted $17.729 billion in revenue in 2021, down 9.44% from 2020, according to a study conducted by Equilar Inc.
DXC’s stock increased from $26.05 at 4 p.m. EST Monday to open at $26.90 Tuesday. It peaked at $28.45 at 2 p.m. Tuesday. The company’s stock closed at $27.31 Wednesday.