US IT consulting giant DXC to buy Switzerland’s Luxoft for $2bn

9 Jan 2019280 Views

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Zug, Switzerland. Image: © Luis/Stock.adobe.com

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New move will expand DXC’s digital offerings to the finance and automotive sectors.

Swiss-based software development company Luxoft is being acquired for $2bn by a US IT consulting player, DXC Technology.

Shareholders in the Switzerland company will get $59 per share in cash, an 86pc premium on the company’s closing price on Friday (4 January).

‘Our success in recent years has been led by our talent and ability to design, develop and deliver truly innovative digital solutions’
– DMITRY LOSCHININ

The multibillion-dollar deal will boost DXC’s digital transformation capabilities, particularly in the finance and automotive sectors.

Luxoft was founded in Russia and is headquartered in Zug, Switzerland. It employs more than 13,000 people and plays a vital role in the analytics, UX, internet of things (IoT) and blockchain spaces as well as providing outsourced engineering services for cloud and DevOps. The company achieved $911m in revenues over the last four reported quarters.

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

People power

The combined company plans to offer new services for the financial services industry, including in insurance, as well as combining DXC’s capabilities in cloud and security with Luxoft’s experience in car systems to create a new portfolio of connected car services.

The majority of Luxoft’s 13,000 employees have a master’s degree or PhD qualification in addition to deep industry backgrounds.

“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,” Luxoft CEO Dmitry 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 realise our vision.”

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com