Exclusive-DXC in advanced talks to sell insurance software unit for $2.4 billion, sources say
NEW YORK, Oct 19 : IT services company DXC Technology is in advanced talks to sell its insurance software and services division to private investment firm Eldridge Industries for about $2.4 billion, according to people familiar with the matter.
Eldridge is discussing combining the business with Zinnia, its insurance technology platform that provides software and digital infrastructure to life insurance and annuity providers, the sources said.
An agreement could be reached in the coming weeks, although there is no certainty a deal will be finalized, the people said, requesting anonymity because the discussions are confidential.
DXC Technology, Eldridge and Zinnia did not immediately respond to requests for comment.
CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less The transaction would mark a significant divestiture for DXC as the information technology services provider seeks to streamline its portfolio after several years of declining revenue. The sale would allow DXC to exit a business that provides technology and outsourcing services to insurers globally, helping the IT services provider streamline its operations after several years of declining revenue. Its insurance division offers policy administration systems and other software and business process services to insurers across life, wealth, property and casualty markets. For Eldridge, a transaction would combine Zinnia's life and annuity technology platform with DXC Technology's insurance software and business-process services operations, creating a scaled provider of software, administration and servicing technology for insurers.
The transaction would mark a significant divestiture for DXC as the information technology services provider seeks to streamline its portfolio after several years of declining revenue.
The sale would allow DXC to exit a business that provides technology and outsourcing services to insurers globally, helping the IT services provider streamline its operations after several years of declining revenue. Its insurance division offers policy administration systems and other software and business process services to insurers across life, wealth, property and casualty markets.
For Eldridge, a transaction would combine Zinnia's life and annuity technology platform with DXC Technology's insurance software and business-process services operations, creating a scaled provider of software, administration and servicing technology for insurers.
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