DXC Technology says ‘non, merci’ to French company’s purchase bid
Paris-based Atos made unsolicited proposal to buy all of Tysons-based company's shares in January
Three weeks after receiving an unsolicited and nonbinding offer to purchase all of its shares, Tysons-based Fortune 500 IT services company DXC Technology’s board has turned down the proposal from Paris-based IT company Atos SE, DXC announced Monday.
According to DXC’s statement Monday night, its board determined Atos’ offer was too low and lacked certainty, and the companies agreed to discontinue further discussions. News reports last month placed the potential deal around $10 billion.
DXC, which was formed in April 2017 as a result of the merger of Computer Science Corp. and the Enterprise Services business of Hewlett Packard Enterprise, had revenues last year of $21 billion and employs 138,000 people worldwide. Atos, which currently has a valuation of $8.2 billion as of the close of the Paris stock market Monday, employs 110,000 people.
Earlier Monday, Bloomberg News reported that Atos had walked away from the potential deal to purchase its rival. “The board of directors of Atos has unanimously determined not to pursue a potential transaction with DXC Technology,” the company said in a statement.
DXC’s stock fell 13% in late trading Monday, according to Bloomberg.