DXC Technology to acquire leading digital innovator, Luxoft

DXC Technology and Luxoft Holding, Inc have announced a definitive agreement for DXC to acquire Luxoft, a global-scale digital innovator with differentiated offerings, deep vertical industry expertise and world-class digital talent.

 

Pursuant to the agreement between DXC and Luxoft, 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.

 

Together, DXC and Luxoft will offer a differentiated customer value proposition for end-to-end digital transformation by combining Luxoft’s digital engineering capabilities with DXC’s expertise in IT modernization and integration. The acquisition will accelerate the digital growth and scale-out strategy outlined by DXC at its Investor Day last fall, and will broaden access to key digital talent.

 

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

 

“Luxoft and DXC are highly complementary, and our shared vision of digital transformation makes this strategic combination a great fit for both organizations -- as well as enormously beneficial for our clients,” said Mike Lawrie, chairman, president and CEO, DXC Technology. “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.”

 

 

A Digital Leader

 

Luxoft offers differentiated digital capabilities in areas such as analytics, UX/UI, IoT and blockchain, and is a significant player in outsourced engineering services, cloud and devops. Luxoft brings strong vertical expertise in key industries, including automotive (digital cockpit, autonomous drive, connected mobility), financial services (digital consulting, regulatory & compliance, platform implementation) and healthcare/life sciences (digital lab, customer engagement). Luxoft also brings a strong portfolio of other industry offerings for travel, media & communications and energy & utilities.

 

Together, Luxoft and DXC will have industry expertise that is both broad and deep. The combined company will be able to offer:

 

• End-to-end digital capabilities for the financial services industry, with a true global footprint;
• New services in insurance, where DXC is a recognized industry leader;
• Unmatched offerings for the automotive industry, combining Luxoft’s knowledge and experience in car systems with DXC’s capabilities in cloud and security for connected auto services; and
• Industry-leading services in healthcare and life sciences, bringing together DXC’s experience in specialized systems with Luxoft’s digital capabilities.

 

Luxoft has a highly skilled digital workforce of close to 13,000 people, the majority of whom have a master’s degree or PhD, along with a deep industry background. The company built and operates a unique talent acquisition and management platform that consistently delivers on-time digital hiring, with an ability to leverage the platform across DXC to improve hiring efficiency.

 

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 Lawrie.

 

“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,” Loschinin said. “Aligning with DXC presents an exciting opportunity to unlock new value for our people, clients and partners. We will gain the scale, resources and market presence to better serve and compete, and to more rapidly realize our vision. As part of DXC, we will preserve Luxoft’s differentiated capabilities and culture while driving growth for the combined company.”