Atos Abandons DXC Technology Acquisition Plan, Buyout Negotiations End
Atos has decided not to pursue a potential DXC Technology acquisition, according to a statement from the Atos board of directors. Rumors about Atos potentially acquiring DXC for more than $10 billion had surfaced in January 2021.
The chatter timeline looks like this:
- January 7, 2021: Atos confirmed the “friendly” conversations with DXC, according to to Reuters. The Atos-DXC discussions were still at a preliminary stage and there was no certainty that a deal will be agreed, Reuters said.
- January 15, 2021: Atos management was talking with some of the company’s biggest shareholders in a bid to win support for the potential DXC takeover, Bloomberg reported.
- February 1, 2021: DXC’s board considers the Atos buyout offer “inadequate and lacking certainty,” and discussions between the two companies end, DXC disclosed.
- February 2, 2021: Atos said it was no longer pursuing the DXC acquisition.
Meanwhile, rumors about Atos seeking to potentially acquire Secureworks from Dell Technologies have also quieted down in recent days. Secureworks is a Top 250 MSSP (managed security services provider) that’s now developing its own SaaS-based cybersecurity software.
Atos and DXC: About Each IT Consulting Company
Atos, based in France, is a global IT consulting giant with cloud and managed security services expertise. The company employs more than 110,000 people across 73 countries. Atos has been active in the M&A market — acquiring at least six IT consulting and digital transformation businesses in 2020.
DXC Technology also is a global IT consulting giant with cloud and MSSP expertise. The company was formed through the merger of CSC and the former Hewlett Packard Enterprise Services business. DXC has has 6,000 customers across 70 countries.
DXC has been both a seller and buyer in the M&A market, and the company has struggled at times to find its overall business rhythm.
Atos Acquiring Secureworks?: About the MSSP
Meanwhile, rumors about Dell potentially selling Secureworks have surfaced from time to time for more than a year. Secureworks has been evolving from traditional managed security services toward software- and cloud-driven intellectual property.
Discussions between Dell and Atos about Secureworks would not be surprising. Atos and Dell have a longstanding relationship that extends back more than a decade.
ChannelE2e has not independently confirmed the Reuters and Bloomberg reports.
Story originally published January 7, 2021. Updated January 15, 2021 and February 2, 2021.