Atos has made a bid for rival services giant DXC Technology.
Atos revealed that an initial proposal for all DXC shares was sent earlier this week valuing DXC at over $10bn including debt, according to Reuters.
The valuation is around $3bn more than DXC’s current market capitalisation of $7.36Bn.
DXC has endured a torrid time since separating from Hewlett Packard Enterprise in 2017.
The firm was spun-out and merged with CSC, after HPE itself had been split from the print and PC-focused arm of HP.
It’s share price is currently down 70 per cent on its peak from September 2018.
Atos said that it had approached DXC concerning a “friendly transaction between the two groups in order to create a digital services leader benefiting from global scale, talent and innovation”, adding that there was “no certainty” that the approach will end in an acquisition.
If successful, Atos would be acquiring a company bigger than itself in terms of revenue. Sales for Atos’ FY19, its most recently reported year, stood at around $13bn – while DXC pulled in nearly $20bn in FY20.
DXC described the enquiry as “unsolicited”, adding that the enterprise technology provider had “no knowledge of any such interest from Atos”.
Atos and DXC had not replied to UC Today’s request for comment at the time of publication
