DXC Technology has announced selling off the local and state health and human resources business units to Veritas Capital for around 5 Billion dollars. The company plans to sell off the group to use the funds for paying off the debt. It also reported plans for selling other business units as well.
Healthcare Business of DXC Goes to Veritas
The Healthcare Business, as per the DXC, costs triple the annual revenue of 1.4 billion. The DXC’s newly appointed CEO is looking for ways to revive the company after its shares and stocks plummeted in the market. The company saw tough times and was criticized by the investors and stakeholders for the policies and strategies of past leadership under ex CEO Mike Lawrie.
Mike Salvino Speaks about the deal
I’m pleased that we continue to execute the plan that we outlined in November, especially in this volatile environment,” said DXC CEO Mike Salvino in a statement.
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The Transaction is Important
“The transaction is an important first step in our business and focusing on the enterprise technology stack. The transaction progressed much faster than we originally anticipated, but we are delighted to partner with Veritas Capital. The leading investor in health care and the government sector.”
Veritas and DXC have worked Together in past
Veritas and DXC have worked together earlier as well. It was in 2018 when some of the parts of Veritas Business, like KeyPoint and Vencore, were clubbed together with DXC’s Federal units to create Perspecta. That deal comprised of both the groups in which Veritas got 400 Million DOllars and 23 Million shares of the stock of Perspecta.
Veritas CEO Speaks about the Deal
The CEO of Veritas Ramzi M Musallan said,
“By combining the business’ talented employees with our extensive industry experience, we plan to build on the business’ unwavering commitment to its customers and leadership in mission-critical healthcare technology to drive continuous improvement in the quality of healthcare for citizens nationwide.”
CFO Paul Saleh elaborates the plans
DXC is actively divesting some of its businesses and units to get back on the track with its debilitating business. The CFO of the company, Paul Saleh Said that “We are continuing to pursue strategic alternatives to the other two assets,” He added. We plan to use any proceeds from those transactions to reduce debt primarily.”