
"We have identified businesses with roughly $500 million in revenues that are not strategic and will not help us grow. Selling these businesses will improve our organic revenue growth and our overall margin. We expect the sale of these businesses to result in an additional $500 million in proceeds within the next 12 months."
DXC: Previous Asset Sales
DXC is no stranger to asset sales. Earlier moves include selling off: Indeed, DXC Technology has sold off these businesses since 2020:- December 2021: An IT services arm in Israel to Ness for $65 million.
- January 2021: Managed trading service provider called Fixnetix to Options Trading.
- July 2020: Healthcare software to privately held Dedalus Group for $525 million in cash.
- March 2020: U.S. State and Local Health and Human Services Business to Veritas Capital for $5.0 billion.
DXC Pursues Organic Growth Rather Than Acquisitions
Meanwhile, DXC is focused on building a strong foundation "and we still have work to do," CEO Salvino. Rather than make acquisitions, the best use for cash over the next 12 months is to return it to shareholders, he asserted. Still, Salvino left the M&A door slightly ajar just in case the right deal comes along. "We never say never," he noted.