Atos, a Paris-based IT services company, reached out to DXC Technology about a potential acquisition – a move that would strengthen the French company’s presence in North America and underscore the service providers’ drive for greater scope. </ In a statement, Atos reiterated its interest in a "friendly transaction between the two groups to create a market leader in digital services". DXC Technology, an IT service provider based in Tysons, Virginia, admitted to having received an "unsolicited, preliminary, non-binding proposal" from Atos to acquire all of the company's shares. DXC Technology's board of directors will evaluate the proposal, the company said in a statement.
« If closed, this deal would provide Atos with access to DXC’s customer base for cross-selling and upselling purposes, as well as Atos’ Aims for greater North American market presence and inorganic growth, « said Bill Martorelli, a lead analyst in the market research firm Forrester Research.
Martorelli said the acquisition could also » have a major impact on the partnership landscape, « noting that Atos and DXC Technology are two of the largest SAP integrators and Google orchestrators.
DXC technology was introduced in 2017 after the merger of HPE’s Enterprise Services division and system integrator CSC. HPE’s enterprise services also developed out of acquisition activities. Hewlett Packard acquired the integrator Electric Data Systems in 2008, before Hewlett Packard was split into HPE and HP Inc.
Citing this acquisition history, Martorelli said, « Many of DXC’s customers have gone through a major transformation. » The acquisition of Atos would provide such customers with « one way forward with less uncertainty about the whims of such a transaction ». He said it remains to be seen whether customers would welcome another change, even a positive one.
The proposed DXC acquisition provides additional evidence that IT service players are striving for scalability and focus, Martorelli said, citing on IBM’s plan to outsource the IT service business.
The unsolicited offer from Atos for its rival could create a provider of mega-solutions
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