DXC Technology sells health care software business for $525M
Transaction expected to close March 2021
Tysons-based Fortune 500 company DXC Technology announced Tuesday it would sell its health care software provider business to privately held Italian company Dedalus Group for $525 million in cash.
The DXC software is used for hospital information systems, primary and social care, integrated care and diagnostics.
“The sale of our health care provider software business to Dedalus is consistent with our strategy of focusing on the enterprise technology stack and rationalizing our portfolio,” DXC President and CEO Mike Salvino said in a statement. “The transaction promises to be beneficial to all our key stakeholders, including our customers and our people.”
The sale is not subject to shareholder approval and is expected to close by March 2021. The transaction was approved by the company’s board of directors.
“The addition of DXC’s healthcare software business will accelerate our growth initiatives that started three years ago and benefit the more than 3 million health care professionals who use our technology to treat more than 200 million patients every year,” Dedalus Group Executive Chairman Giorgio Moretti said in a statement.
For the transaction, DXC used Mizuho Securities USA LLC as a financial adviser and Latham & Watkins LLP as a legal adviser. UBS Securities acted as financial adviser and Clifford Chance acted as legal adviser to the Dedalus Group.
DXC Technology was formed in April 2017 as a result of the merger of Computer Science Corp. and the Enterprise Services business of Hewlett Packard Enterprise. The company has 138,000 employees worldwide and last year had revenues of more than $21 billion.