CSC has entered into exclusive negotiations to acquire UXC Limited, Australia’s largest independent and publicly owned IT services company, for $428 million.
Among the UXC businesses are SAP consulting and services company UXC Oxygen, market research firm Telsyte and digital consultancy UXC White Labelled.
The acquisition is subject to completion of a five-week due diligence process, board approvals, and other requirements, and if it proceeds, will be expected to complete in February 2016.
Cris Nicolli, managing director, UXC said, “The proposal from CSC recognises the potential of UXC and is a testament to the strong business we have built. The Board of UXC is supportive of this move.
“A combined CSC-UXC would be among the region’s largest IT services companies, based on revenues. This combination will provide an expanded set of services for customers as well as a broader industry reach.
“All of us at UXC are tremendously proud of what we’ve achieved to date, and the proposal from CSC represents a potential next stage in the evolution of our company.”
UXC Limited reported annual revenues of $686 million in the 2015 financial year and has 3000 employees. The business has three main operating divisions – enterprise applications, IT infrastructure, and IT consulting.
Global technology giant CSC announced plans to separate its government business from its commercial information technology division in May.