IT and consulting services provider DXC Technology is set to buy software development company Luxoft Holding for about $2 billion to expand its digital offerings to the financial and automotive sectors.
Luxoft shareholders will get $59 per share in cash, representing a premium of about 86 percent to the company’s closing price on Friday.
Shareholders representing about 83 percent of Luxoft’s voting power have endorsed the deal, resulting in obtaining the requisite Luxoft shareholder approval, said Mike Lawrie, chairman, president and CEO, DXC Technology.
Luxoft chief executive officer Dmitry Loschinin will continue to head the business called Luxoft, a DXC Technology Company. Dmitry Loschinin will report to DXC Technology CEO Mike Lawrie.
Headquartered in Zug, Switzerland, Luxoft achieved $911 million in revenue over the last four reported quarters, with a double-digit compound annual growth rate (CAGR) over the last three years. Luxoft has digital workforce of close to 13,000 people, the majority of whom have a master’s degree or PhD.
The combined company — Luxoft plus DXC — will serve more than 20 manufacturers and OEMs in the automotive space across North America, Europe and the Asia Pacific region. The combined company will serve half of the top financial institutions in the Americas and Europe.
DXC Technologies earlier said it reported quarterly revenue of $5.013 billion (–8.1 percent) in the second quarter of 2018 due to a stronger dollar, completion of several large transformation projects, and slower ramp-up on a few large Digital contracts.
DXC Technologies has generated revenue of $2.111 billion (–8.7 percent) from Global Business Services (GBS) and $2.902 billion (–7.6 percent) from Global Infrastructure Services (GIS).