CSC Completes UXC Acquisition to Form One of Largest IT Services Companies in the Australia-New Zealand Region
News Release -- March 01, 2016
SYDNEY, AUSTRALIA – CSC (NYSE: CSC) today announced that it has completed the acquisition of UXC Limited, Australia’s largest independent and publicly-owned IT services company, to form one of the region’s largest IT services companies. The acquisition was accepted overwhelmingly by UXC shareholders, with approval by the CSC and UXC boards and Australian regulators.
“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.”
The completion of the acquisition is a culmination of a due diligence process that began in October 2015. On 26 February, CSC bought and paid for all of UXC’s 345 million shares for A$1.22 per share, along with a franked dividend of A$0.02 for the December half year. The total price of the transaction was approximately A$427.6 million (US$307.9 million).
UXC has mid-market leadership in enterprise application capabilities – including Microsoft Dynamics, SAP, Oracle and ServiceNow – as well as consulting, applications management, professional services, connect infrastructure and health services. These capabilities and UXC’s entrepreneurial business and culture complement CSC’s next-generation offerings and deep 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, CSC Australia and New Zealand.
Commenting on the integration, Phil Hassey, founder of advisory firm, capioIT, said: “Technology providers need to shift 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."
The addition of UXC further advances CSC’s growth strategy and the momentum created with the separation of the company’s U.S. Federal Government business and the recent acquisitions of Fixnetix and Fruition Partners, along with CeleritiFinTech, CSC’s joint venture with HCL.
CSC (NYSE: CSC) leads clients on their digital transformation journeys. The company provides innovative next-generation technology services and solutions that leverage deep industry expertise, global scale, technology independence and an extensive partner community. CSC serves leading commercial and international public sector organizations throughout the world. CSC is a Fortune 500 company and ranked among the best corporate citizens. For more information, visit the company's website at www.csc.com.