IT management firm DXC receives takeover approach

DXC Technology said it had been approached by a financial sponsor regarding a potential takeover of the IT management company, without disclosing further details.

Shares of the company, which has a market capitalization of nearly $6 billion, jumped nearly 9% on Tuesday before a trading halt. They were up 5.5% after trading resumed.

The company has received no formal proposal but is engaged in preliminary discussions, it said.

Baring Private Equity Asia made the takeover approach, according to a tweet from a Bloomberg reporter. Baring did not immediately respond to a Reuters request for comment.

If a takeover is successful, DXC would be one of several high-flying firms that have opted to go private as surging interest rates and punishing levels of inflation squeeze stock prices.

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Vista Equity Partners last month offered to buy software security firm KnowBe4 Inc.

In August, air-freight company Atlas Air Worldwide Holdings Inc agreed to be taken private for nearly $3 billion by an investor group led by private equity giant Apollo Global Management Inc.

The report comes over a year after DXC ended merger talks with French IT consulting group Atos SE, which had made a $10 billion offer for the company.

Source: Reuters

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