DXC Technology receives takeover interest

Bloomberg reports Fortune 500 IT company approached by private equity firm

Published September 22, 2022 by Courtney Mabeus

Ashburn-based DXC Technology Co. has received takeover interest from at least one private equity firm and is working with advisers, Bloomberg reported Wednesday.

A company spokesperson declined to confirm details about the potential takeover to Virginia Business, saying DXC doesn’t “comment on market rumor and speculation.”

The company’s stock rose to $28.84 at 1:30 p.m. EST on the news Wednesday, up from a low of $27 at 10 a.m. that day. It dropped Thursday morning to $26.85. The company’s stock reached its highest point so far in 2022 on Feb. 8, when it was trading at $38.82.

DXC posted $16.265 billion in 2022 revenue, down 8.26% from 2021, when it reported $17.729 billion. That, in turn, was 9.44% less than the $19.577 billion DXC reported in 2020.

DXC CEO, President and Chairman Mike Salvino has told investors that the company has been going through a multiyear “transformation journey” to become better focused and more cost-effective. In earnings calls this year, the company said it missed some revenue goals after encountering unexpected costs and other disruptions associated with Russia’s invasion of Ukraine, which prompted DXC to withdraw business from Russia.

DXC rejected an unsolicited bid by Paris-based IT company Atos SE to buy the company early last year. Salvino added chairman to his title in May.

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