Atos Places Bid to Acquire DXC Technology for US$10 Billion

French IT consultant Atos has made a US$10 billion bid to acquire its American rival DXC Technology.

Tysons, Virginia-based DXC Technology has confirmed the proposal, adding that its board of directors was evaluating it.

The acquisition will give Atos access to a treasure house of cloud applications and analytics solutions, in addition to several deep-pocketed US clients and B2B products.

DXC Technology was created in 2017 when the Hewlett Packard Enterprise Company (HPE) spun off its Enterprise Services business and merged it with Computer Sciences Corporation (CSC). When this merger was announced, DXC Technology had revenues of US$25 billion.

Bezons, France-based Atos is buying out companies one after another. It wrapped up as many as 12 acquisition deals in the past year. On the other hand, DXC Technology is selling off its subsidiaries one after another in an effort to reduce its debt burden.

Atos made US$13 billion in revenue in 2019. It is a major cybersecurity services provider for several large corporations around the world, but its cloud computing and digital transformation services are not yielding as much profit.

DXC Technology gained access to a large number of European clients as well following its acquisition of Luxoft in 2019.