DXC Technology is selling its healthcare software provider business to privately held Dedalus Group for $525 million in cash, the companies disclosed today. This is the latest in a growing list of DXC moves designed to improve the global IT consulting firm's revenue and profit mix, while sharpening DXC's focus on key growth opportunities.
This is M&A deal 296 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.
DXC’s healthcare provider software business includes a digital health platform that delivers contextual and actionable insights across the healthcare ecosystem, the company says.
Dedalus, founded in 1982, is a European healthcare and diagnostic software company. Dedalus, backed by private equity firm Ardian, says the deal allows the firm to "create an even stronger global force in the clinical IT areas of hospital information systems (HIS), primary and social care, integrated care and diagnostics."
Dedalus has more than 3,500 employees -- 1,100 of whom are focused on R&D. The company supports more than 5000 hospitals and 5000 laboratories around the world.
Dedalus Acquires DXC Technology's Healthcare Software Business
In a prepared statement about the deal, DXC CEO Mike Salvino said:
“The sale of our healthcare provider software business to Dedalus is consistent with our strategy of focusing on the Enterprise Technology Stack and rationalizing our portfolio. The transaction promises to be beneficial to all our key stakeholders, including our customers and our people."
Added Giorgio Moretti, executive chairman of the Dedalus Group:
“The addition of DXC’s healthcare software business will accelerate our growth initiatives that started three years ago and benefit the more than 3 million healthcare professionals who use our technology to treat more than 200 million patients every year.
Mizuho Securities USA LLC acted as financial advisor and Latham & Watkins LLP acted as legal advisor to DXC. UBS Securities acted as financial advisor and Clifford Chance acted as legal advisor to the Dedalus Group.
DXC Technology Sells, Acquires Assets
DXC has been selling and acquiring various assets to improve the IT consulting firm's overall revenue and profit mix. Recent exits include selling certain assets to Veritas Capital for $5 billion, and acquiring:
- CMORE Automotive for autonomous driving technology;
- Syscom for ServiceNow expertise;
- a Credit Suisse data center for managed colocation services;
- a Microsoft Dynamics and SAP partner for enterprise software expertise.