Wheeling And Dealing
Vencore, KeyPoint and DXC Technology's U.S. public sector business have unveiled plans to come together and form a $4.3 billion, 14,000-employee U.S. government solution provider with security, cloud and analytics expertise.
DXC said the new company – whose name is yet to be determined – will be one of the five largest pure-play federal government solution providers. The merger is expected to close on March 31, 2018.
Each of the companies enters the deal with some issues: KeyPoint suffered a high-profile security breach; Vencore eyed an initial public offering before deciding to go in a different direction; and NASA took the unprecedented step of rescinding DXC's "authority to operate" back when the business was part of Hewlett Packard Enterprise.
Here are 10 things to know about the mega-deal and the rapidly consolidating public sector solution provider space.