Atos May Acquire DXC Technology, Secureworks
Atos is seeking to acquire IT consulting rival DXC Technology for more than $10 billion, Reuters reports. Atos may also be seeking to acquire managed security services provider (MSSP) Secureworks from Dell Technologies, Bloomberg reports.
Updated January 15, 2021: Atos management is talking with some of the company’s biggest shareholders in a bid to win support for the potential DXC takeover, Bloomberg reports.
Report from January 7, 2021: Atos confirmed the “friendly” conversations with DXC to Reuters. The Atos-DXC discussions are still at a preliminary stage and there is no certainty that a deal will be agreed, Reuters said.
Amid the M&A rumors, DXC shares rose about 12 percent in pre-market trading. Secureworks ($SCWX) shares rose about 7 percent in pre-market trading.
Atos Acquiring 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 is a Top 250 MSSP, according to MSSP Alert. 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.