Atos had last month proposed to acquire DXC, an IT services firm formed by the merger of CSC and services business of HP Enterprise, for $10 billion including debt. DXC earlier confirmed the proposal to ET. Atos has been on an acquisition spree over the past few years. In 2018 it acquired Syntel to expand its services and enter new markets.
DXC on Tuesday said the two companies have “agreed to discontinue further discussions” on the proposal. “The DXC Board of Directors carefully evaluated the proposal, together with its financial and legal advisors. The offer was determined to be inadequate and lacking certainty in light of the value the Board believes DXC can create on a standalone basis by executing our transformation journey,” said DXC in a statement.
The company said it remains confident in its transformation journey, focused on delivering for its employees, customers and shareholders.
Analysts said the combined entity would have created a total workforce of nearly 75,000 people in India, thereby giving a potential cost advantage in services delivery.