The big Amercian IT services company has today confirmed that it has entered into a binding Scheme of Implementation agreement to acquire the shares of UXC (ASX:UXC).
Today’s announcement follows a period of due diligence after the two companies announced they were entering negotiations on the deal in early October.
The deal will see CSC acquire 100% of the issued capital of UXC for a cash consideration of A$1.22 per share, and with UXC paying a franked dividend of A$0.02 cash per share for the half year ending 31 Dec.
UXC, Australia’s largest independent and publicly owned IT services company, has annual revenues of A$686 million (US$493.9 million) and employs nearly 3,000 people. CSC has 70,000 professional employees and annual revenue in excess of US$12 billion.
CSC managing director for Australia & New Zealand, Seelan Nayagam, said the acquisition of UXC, will position the company amongst the region’s largest IT service providers.
“When completed, this acquisition will broaden CSC’s market coverage and next-generation offerings, with an expanded client base and deeper industry expertise.”
CSC’s president and CEO Mike Lawrie said the addition of UXC would continue the process of “rebalancing our offering portfolio and strengthening our global commercial business”.
“UXC’s application platform capabilities – combined with CSC’s existing strengths in cloud, cyber, and big data – would enhance what the two companies already deliver to clients in the region.”
Lawrie said the combination would offer an expanded client base and deeper industry expertise for both firms.