DXC Technology Statement

Rhea-AI Summary

DXC Technology (NYSE: DXC) announced on October 4, 2022, that it was approached by a financial sponsor regarding a potential acquisition. However, due to challenges in raising capital amid current market conditions, no formal proposal was received, leading DXC to terminate discussions. The company remains focused on its growth strategy, aiming to enhance organic growth, margin expansion, earnings per share, and free cash flow. DXC emphasizes its commitment to maximizing shareholder value through these initiatives and does not intend to comment further on the acquisition talks.

Positive

• Focus on organic growth and margin expansion.
• Commitment to maximizing shareholder value.

Negative

• No formal acquisition proposal received.
• Challenges in securing capital from potential buyers.

ASHBURN, Va.--(BUSINESS WIRE)-- In response to market rumors and speculation, on Oct 4th, 2022, DXC Technology (NYSE: DXC) announced that it was approached by a financial sponsor regarding a potential acquisition of the company. Consistent with its fiduciary responsibility to maximize shareholder value, the company engaged in preliminary discussions and shared information with a financial sponsor.

Due to the financial sponsor’s challenges in raising the necessary capital, as a result of current market conditions, no formal proposal was received by the company and DXC has terminated the discussions.

Throughout this process, the DXC team has been focused on driving the company to its inflection point. DXC remains well positioned to deliver the business it envisioned for its people, customers, and shareholders, a business that grows organically and expands margin, earnings per share and free cash flow.

The Company does not intend to comment further on this matter.

About DXC Technology

DXC Technology (NYSE: DXC) helps global companies run their mission-critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. The world's largest companies and public sector organizations trust DXC to deploy services to drive new levels of performance, competitiveness, and customer experience across their IT estates. Learn more about how we deliver excellence for our customers and colleagues at DXC.com.

Forward Looking Statements

All statements in this press release that do not directly and exclusively relate to historical facts constitute “forward-looking statements.” These statements represent current expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved. Such statements are subject to numerous assumptions, risks, uncertainties, and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by the coronavirus disease 2019 crisis and the impact of varying private and governmental responses that affect our customers, employees, vendors and the economies and communities where they operate. For a written description of these factors, see the section titled “Risk Factors” in DXC’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022, and any updating information in subsequent SEC filings. No assurance can be given that any goal or plan set forth in any forward-looking statement can or will be achieved, and readers are cautioned not to place undue reliance on such statements which speak only as of the date they are made. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this report or to reflect the occurrence of unanticipated events except as required by law.

Category: Investor Relations

View source version on businesswire.com: https://www.businesswire.com/news/home/20230306005819/en/

John Sweeney, Investor Relations, +1-980-315-3665, john.sweeney@dxc.com

Sean B. Pasternak, Corporate Media Relations, +1-647-975-7326, sean.pasternak@dxc.com

Source: DXC Technology

FAQ

What happened on October 4, 2022, regarding DXC Technology?

DXC Technology announced it was approached by a financial sponsor for a potential acquisition but later terminated discussions due to lack of a formal proposal.

What are the current financial challenges faced by DXC Technology?

DXC faced challenges in acquisition discussions due to the financial sponsor's inability to raise necessary capital.

How does DXC Technology plan to maximize shareholder value?

DXC is focusing on organic growth, margin expansion, and enhancing earnings per share and free cash flow.

Is DXC Technology planning to pursue other acquisition opportunities?

The company has not indicated any future acquisition plans following the termination of the recent discussions.