DXC makes monster $2bn acquisition

Services giant continues acquisition strategy after snapping up two UK partners last year

DXC Technology has acquired IT consultancy firm Luxoft in a deal valuing the company at $2bn (£1.6bn).

The agreement will see Luxoft receive $59 per share in cash.

DXC CEO Mike Lawrie said: "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.

"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."

Luxoft was founded in Moscow, but is now headquartered in Switzerland, and claims to have around 12,900 employees globally.

The firm will retain its brand, but operate as "a DXC Technology company".

Luxoft CEO Dmitry Loschinin, who will remain at the helm, said: "Our success in recent years has been led by our talent and ability to design, develop and deliver truly innovative digital solutions tailored to client business needs.

"Aligning with DXC presents an exciting opportunity to unlock new value for our people, clients and partners."

Luxoft is currently listed on the New York Stock Exchange and reported a revenue of $911m over its last four reported quarters.

DXC has made a number of high-profile acquisitions since spinning out of HPE and merging with CSC.

Last year in the UK it acquired Microsoft Dynamics 365 partner eBECS and ServiceNow partner TESM.

The transaction is expected to close in June.