news Multinational IT services corporation CSC has completed the acquisition of UXC, Australia’s largest independent and publicly owned IT services company for over $420m.
The acquisition was accepted overwhelmingly by UXC shareholders, with approval from both company boards and Australian regulators, the acquiring firm said.
“We are very pleased to have the UXC team join CSC to create one of the region’s largest and most dynamic IT services companies,” said Mike Lawrie, CSC’s chairman, president and CEO. “Together, CSC and UXC will be capable of leading the most challenging projects for our clients, and – at the same time – creating exciting opportunities for our people.
“The addition of UXC continues the process of rebalancing our offering portfolio and positioning CSC to lead in the markets and industries it serves around the world,” he added.
The acquisition got under way in October 2015, with a due diligence process. Then, on 26 February, CSC purchased all of UXC’s 345 million shares at A$1.22 per share, along with a franked dividend of $0.02 for the December half year, producing a total for the transaction of approximately $427.6 million.
UXC specialises in enterprise application capabilities, including Microsoft Dynamics, SAP, Oracle and ServiceNow, as well as consulting, applications management, professional services, connect infrastructure and health services.
CSC said these capabilities and UXC’s “entrepreneurial business and culture” will complement its “next-generation offerings and industry expertise”.
“CSC and UXC together will be a new and agile organisation that is well positioned to partner with clients on their digital transformation journeys. It is a further step in CSC’s global strategy to be a growth-oriented, client-focused, pure-play leader in digital transformation,” said Seelan Nayagam, managing director of CSC Australia and New Zealand.
Phil Hassey, founder of advisory firm, capioIT, explained that technology providers need to shift their capabilities in order to survive the transition to digitally enabled enterprises.
“By acquiring UXC in Australia, CSC has significantly enhanced capabilities in application platforms such as SAP, Oracle and Microsoft and will be able to offer global expertise to the UXC installed base, particularly mid-market organisations, as they make the shift to a digital-enabled economy,” he said.
The purchase of UXC is part of CSC’s growth strategy, the US-based firm said, and sees the Australian firm join its other recent acquisitions of Fixnetix and Fruition Partners, along with CeleritiFinTech, a joint venture with HCL.