Smriti Sharma
As the year starts, some organizations are riled up to make big moves and one such is the French-based IT Company Atos. Atos might acquire DXC as it verifies the rumor about bidding $10 billion for DXC Technology.
DXC is a B2B IT service corporation founded in 2017 in the US. It was founded when HP (Hewlett Packard Enterprise) merged with CSC (Computer Science Corporation). It is currently valued at $6.7 billion. The company operates across 70 countries and has 6,000 customers.
Atos is a French-based multinational IT consulting and service company. It specializes in big data, unified communication, hi-tech transaction services, cloud, and cybersecurity. It acquired KPMG consulting in the year 2002, Siemens IT Solutions and Services in 2011. The company currently operates in more than 75 countries and can generate a revenue of €12 billion.
Reuters reported earlier this week that the two companies are in talks and on 7th January, Atos confirmed that it has initiated talks with DXC over a friendly acquisition matter. The objective of this acquisition is to create digital services leader that can benefit from innovation and talent on a global scale.
Atos also stated that the talks were in a very early stage ad there is no certainty if the discussion will end in an agreement or not. DXC has also confirmed that it has received the preliminary non-binding proposal and is going over the matters.
This acquisition is directly going to positively affect both Atos and DXC as the joint venture would then be able to add nearly 140,000 employees. It already has a headcount of 110,000 and the addition of the new members will bring the total to 250,000 staff globally. This way, the joint venture will close the gap between the total numbers of employees in Capgemini that is 270,000 staff on its payroll.
Atos’s ultimate goal is to build its growth strategy to take the position of the leading player in the IT services market. In the last twelve months, Atos Acquired two Salesforce players in France and the US and Motiv ICT Security in the Netherlands.
Atos might acquire DXC and if it happens, DXC will be its largest acquisition. The shareholders of Atos are not impressed as after this revelation, the stock price dropped for Atos while DXC’s stock prices soared. DXC is also reported to be in talks with Dell technologies. The company has the intent to buy its security service provider Secure works.