DXC To Sell Healthcare Business To Italy’s Dedalus Group In $525M Cash Deal

July 20, 2020, 05:53 PM EDT

DXC, which has been trying to sell off certain parts of the business accounting for about one-quarter of its total revenue, hopes to close on the $525-million sale of the DXC healthcare provider software business by March of next year.

DXC Technology on Monday said it is selling its healthcare providers software business to an Italian healthcare technology company in a cash deal worth $525 million.

The deal will make Tysons, Va.-based DXC healthcare provider software business a part of Florence, Italy-based Dedalus Group, which claims to be Europe‘s leading healthcare and diagnostic software provider and one of the largest in the world.

DXC, which was formed in the 2017 merger of HPE Enterprise Services and CSC, has been looking since late last year to seek strategic alternatives for three of its businesses: its U.S., state, and local health and human services business; its horizontal BPS (business process services) business; and its workplace and mobility business. Those businesses combined represented about 25 percent of DXC‘s total revenue.

[Related: 5 Keys To Understanding DXC‘s Planned Divestiture Of Three Businesses]

DXC declined to provide more information about the sale beyond the company‘s press release.

DXC‘s healthcare provider software is currently used by over 1 million users, including users in 80 percent of the top 15 U.S.-based Fortune 500 healthcare organizations, DXC claimed on its website. Those users are maintaining 100 million electronic health records.

The software business includes an open digital health platform DXC claims can help improve care outcomes with contextual and actionable insights.

Mike Salvino, president and CEO of DXC Technology, said in a prepared statement that the deal will benefit DXC‘s stakeholders, including customers and personnel.

“The sale of our healthcare provider software business to Dedalus is consistent with our strategy of focusing on the Enterprise Technology Stack and rationalizing our portfolio,” Salvino said.

The deal is expected to close by March 2021.

Joseph F. Kovar

Joseph F. Kovar is a senior editor and reporter for the storage and the non-tech-focused channel beats for CRN. He keeps readers abreast of the latest issues related to such areas as data life-cycle, business continuity and disaster recovery, and data centers, along with related services and software, while highlighting some of the key trends that impact the IT channel overall. He can be reached at jkovar@thechannelcompany.com.