DXC rejects Atos' 'inadequate' acquisition bid

French IT services firm last month confirmed proposal to acquire competitor

DXC Technology has rejected Atos' acquisition bid which valued the global SI at a reported $10bn.

The French IT services firm last month confirmed that it had made a bid for DXC. At the time, the approach was "concerning a potential friendly transaction between the two groups in order to create a digital services leader benefitting from global scale, talent and innovation".

However, it has now walked away from the bid after DXC rebuffed its advances.

"The board of directors of Atos has unanimously determined not to pursue a potential transaction with DXC Technology," Atos revealed in a statement.

DXC said it had "no knowledge" of any interest from Atos prior to the approach and that the offer was "inadequate".

"The offer was determined to be inadequate and lacking certainty in light of the value the board believes DXC can create on a standalone basis by executing our transformation journey," DXC wrote in a statement.

"After sharing certain high-level information in order to help Atos understand why the board believes the proposal undervalued DXC, Atos and DXC today agreed to discontinue further discussions."

Atos has previously made public its intention to garner more of the US MSSP market. It last year acquired $29m-revenue Paladion and previously shelled out $3.4bn in 2018 for Michigan-based Syntel.