Managed services News
DXC Earnings Preview: 4 Big Things To Focus On
Joseph F. Kovar
DXC Technology is a major player in the global IT services market and as it is set to report its financial earnings Wednesday, all eyes will be on the lookout for signs of growth.
Is DXC Still Talking With Potential Suitors?
Perhaps the biggest question about DXC for the time being is how serious the talk is about a potential acquisition of the solution provider.
DXC in September was reported to be the target of acquisition talks by at least one unnamed private equity firm after DXC abruptly pulled out of its investor presentation at a Deutsch Bank conference earlier that month. Bloomberg at the time said DXC had started working with advisers after receiving interest from private equity.
DXC in October confirmed that it was in discussions with a “financial sponsor” that could lead to an acquisition, and in a statement said, “Management has been approached by a financial sponsor regarding a potential acquisition of the company. Management remains focused on the company’s transformation journey. Consistent with its fiduciary responsibility to maximize shareholder value, the company is engaged in preliminary discussions and is sharing information. However, to date no formal proposal has been received. There are no assurances that any proposal will be received or determined to be adequate by the board of directors.”
That was further confirmed in November when, during the company’s second fiscal quarter 2023 quarterly conference call, DXC Chairman, President and CEO Mike Salvino again confirmed that talks were still on.
“We have been approached by a financial sponsor regarding a potential acquisition of DXC,” he said. “Consistent with our fiduciary responsibility to maximize shareholder value, we have engaged in preliminary discussions and are sharing information. However, to date, no formal proposal has been received. Also, there are no assurances that any proposal will be received or determined as adequate by our board of directors. We do not intend to comment further on this matter.”