DXC Technology Co is working with financial advisers after receiving takeover interest from at least one private equity firm, Bloomberg News reported on Wednesday, citing people familiar with the matter.
Shares of the information technology services provider, which has a market capitalisation of more than $6 billion, rose as much as 9% after the report.
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When contacted by Reuters, DXC said it does not comment on “market rumor and speculation.”
The identity of potential investors that approached DXC and whether the IT services company is open to sale are not immediately clear, according to the Bloomberg report.
PE firms have stepped up deal making, taking advantage of the fall in valuations of technology companies due to worries over rising interest rates and an economic slowdown.
Vista Equity Partners this week offered to buy software security firm KnowBe4 Inc.
The report comes over a year after DXC ended merger talks with French IT consulting group Atos SE, which had made a $10 billion offer for the company. (https://reut.rs/3QVGsdG) (Reporting by Yuvraj Malik in Bengaluru; Editing by Maju Samuel)