DXC Technology, the IT services and digital transformation solution company, and Luxoft, the global-scale digital innovator, have entered into a definitive acquisition agreement.
Pursuant to the agreement between DXC and Luxoft, all of the issued and outstanding Luxoft Class A and Class B ordinary shares will receive $59.00 per share in cash, representing a total equity value of approximately $2 billion.
Luxoft will remain an independent organisation within DXC and to help spearhead the company’s digital growth.
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In the automotive space, the combined company — Luxoft plus DXC — will serve more than 20 manufacturers and OEMs across North America, Europe and the Asia Pacific region.
DXC and Luxoft will now also serve half of the top financial institutions in the Americas and Europe.
Together, the companies will address the full spectrum of business-driven digital initiatives, from modernising legacy IT systems to delivering transformational digital solutions at scale.
The acquisition will accelerate the digital growth and scale-out strategy outlined by DXC at its Investor Day last fall, and will broaden access to key digital talent.
Luxoft provides digital strategy consulting and engineering services for companies across North America, Europe and the Asia Pacific region. Headquartered in Zug, Switzerland, the company achieved $911 million in revenue over the last four reported quarters, with a strong, double-digit compound annual growth rate (CAGR) over the last three years.
“Luxoft and DXC are highly complementary, and our shared vision of digital transformation makes this strategic combination a great fit for both organisations — as well as enormously beneficial for our clients,” said Mike Lawrie, chairman, president and CEO, DXC Technology.
“Luxoft has a proven track record and expertise in producing measurable business outcomes at-scale for global clients across key industries, including automotive and financial services. The addition of Luxoft accelerates DXC’s growth strategy as we equip the company to meet the digital requirements of our clients today and in the future.”