Government focused IT solutions provider Perspecta has completed its separation from DXC Technologies and began trading Friday morning on Wall Street.
The company was spun off from DXC’s $2.9 billion public services business, USPS, then merged with $1.2-billion government consultant Vencore and $300-million government background check service provider KeyPoint. Perspecta will be helmed by Vencore CEO Mac Curtis, while DXC CEO Mike Lawrie will serve as the company's chairman.
"Last fall, DXC's board of directors set on a path to unlock value by spinning out DXC's U.S. Public Sector business, enabling two leading pure-play companies to focus exclusively on their respective customer segments and better serve the interests of their individual clients, employees and other stakeholders," Lawrie said in a statement Friday morning. “The strategic combination of USPS with Vencore and KeyPoint creates an end-to-end solution provider that is uniquely positioned to drive value."
Perspecta opened trading on the New York Stock Exchange, selling at $24.86 per share. It was down $0.50 in morning trading. On June 11 members of the Perspecta leadership team are expected to ring the NYSE Opening Bell to mark the creation of the new company.
Perspecta has 14,000 employees and begins with revenue of $4.2 billion. The company aims to capture IT business in U.S. government agencies around cloud migration, digital transformation, analytics, security and enterprise optimization.
"Combining the strong enterprise IT services business from USPS with the innovative mission services businesses of Vencore and KeyPoint creates a powerful force in the market with compelling scale and a promising financial profile," said Mac Curtis, Perspecta president and CEO, in a statement. "Together, we have an extensive intellectual property portfolio and unparalleled knowledge in areas that are directly aligned with government priorities. Our talented employees are excited about moving forward together as a single, stronger company dedicated to supporting the important missions of our customers."
Tysons, Va.-based DXC, No. 11 on the 2017 CRN Solution Provider 500, has previously said Perspecta will create one of the five largest pure-play U.S. government solution providers.