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Global services provider DXC Technology has confirmed that its management has been approached by a financial sponsor regarding a potential acquisition of the company.
According to the latest report on Bloomberg, the interested party is pan-Asian firm Baring Private Equity Asia (BPEA), but discussions may not necessarily lead to a done deal.
“Management remains focused on the company's transformation journey. Consistent with its fiduciary responsibility to maximise shareholder value, the company is engaged in preliminary discussions and is sharing information,” DXC confirmed in a statement.
“However, to date, no formal proposal has been received. There are no assurances that any proposal will be received or determined to be adequate by the board of directors.
“The company does not intend to comment further on market rumours or developments unless it deems additional disclosure to be appropriate or required.”
This isn't the first time DXC has been at the centre of buyout discussions.
Last year, the board of DXC flatly rejected Atos’ unsolicited bid to acquire the operator after carefully evaluating the proposal together with its financial and legal advisor.
At the time DXC said the bid was “inadequate and lacking certainty in light of the value the board believes DXC can create on a standalone basis by executing our transformation journey.
“After sharing certain high-level information in order to help Atos understand why the board believes the proposal undervalued DXC, Atos and DXC agreed to discontinue further discussions," it said.
In January 2021, France-headquartered Atos made a surprise and unexpected bid to acquire DXC in a reported US$10 billion deal, a move which was labelled as “unsolicited” from the industry rival.
