DXC Technologies Gobbles Up Luxoft

European software development services provider Luxoft, which has a significant presence in Mexico, has been acquired by American IT company DXC Technology for US$2 billion.

The acquisition will help DXC beef up its digital strategy, gaining access to Luxoft’s engineering talent as well as delivery centers across the globe.

DXC says it will now create a specialized digital transformation services unit by combining Luxoft’s digital engineering capabilities with its own expertise in IT modernization and integration.

With more than 13,000 employees, Luxoft has made US$911 million in revenue over the last four quarters.

Zug, Switzerland-based Lusoft is one of the major players in outsourced engineering services, cloud, and devops, with most of the clients in sectors, including automotive, financial services, and healthcare/life sciences.

These days the company is increasingly focusing on analytics, IoT, and blockchain technologies.

“I see this acquisition as a lot of pluses for DXC,” wrote Peter Bendor-Samuel, CEO of Everest Group in an article on Forbes. “A key benefit will be DXC’s ability to use the potential of Luxoft to overcome DXC’s infrastructure concentration issues. This should be a big win for DXC.”

Luxoft comes with several top-notch tech solutions, platforms, delivery models, in addition to numerous cross-selling opportunities for DXC. The combined company will serve half of the top financial institutions in the Americas and Europe, in addition to 20 manufacturers and OEMs, stated the American firm in a press release.

“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,” said Mike Lawrie, chairman, president and CEO, DXC Technology.

Luxoft will maintain its brand but operate as a ‘DXC Technology Company’ and will continue to be led by Dmitry Loschinin, the company’s current president and CEO, who will report to Lawrie.

Luxoft has its roots in Russia, but it relocated most of its management team to Switzerland after the pro-Russian unrest in Ukraine in 2014. In the same year, it expanded its operations to Mexico with the launch of a delivery center in Guadalajara.

Two years later, it widened its North American footprint by acquiring US-based IT consulting firm INSYS Group.