DXC Technology To Acquire Luxoft Holding For About $2 Bln - Quick Facts

(RTTNews) - Information technology services provider DXC Technology Co. (DXC) has agreed to acquire Luxoft Holding, Inc (LXFT), a provider of software development services and IT solutions, for an equity value of about $2 billion, the two companies said Monday.

Pursuant to the agreement between the companies, 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.

The companies expect to combine Luxoft's digital engineering capabilities with DXC's expertise in IT modernization and integration.

Zug, Switzerland-based Luxoft provides digital strategy consulting and engineering services for companies across North America, Europe and the Asia Pacific region. The company achieved $911 million in revenue over the last four reported quarters, with a strong, double-digit compound annual growth rate or (CAGR over the last three years.

Closing of the transaction is anticipated by June 2019. Shareholders representing about 83 percent of the total voting power of Luxoft have delivered written consents in support of the transaction, as a result of which the requisite Luxoft shareholder approval has been obtained.

Tysons, Virginia-based DXC noted that the acquisition of Luxoft will expand its digital offerings portfolio, broaden its presence in high-growth verticals, enhance access to engineering talent globally, and strengthen the company's digital value proposition overall.

The focus of the transaction will be on accelerating growth for DXC, with a focus on cross-selling digital services, expanding into new markets and scaling digital talent.

Luxoft serves marquee clients in every region, with particular depth in European markets. 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. The combined company will serve half of the top financial institutions in the Americas and Europe.

Luxoft will maintain its brand and operate as "A DXC Technology Company," and will continue to be led by Dmitry Loschinin, the company's current president and CEO, who will report to Mike Lawrie, chairman, president and CEO of DXC Technology.