martinwolf
Transaction Analysis
CSC to Acquire UXC Limited
Financial Information
- Total Transaction Size A$450.1M
- EV/LTM Revenue 0.62x
- EV/LTM EBITDA 11.47x
Transaction Facts
- US technology services firm Computer Sciences Corporation (NYSE:CSC) today announced that it entered into negotiations to acquire Australian IT Services provider UXC Limited (ASX:UXC) subject to diligence, board approvals and other requirements.
- News of the transaction, which has reportedly been in discussion for several months, was broken in The Australian Financial Review's Street Talk. CSC releasing a statement confirming the news earlier today.
- While the deal's proposed price of A$1.26 per share is lower than UXC's Monday close of A$1.33 per share, UXC said the deal is a 33.3 percent premium to the 120 day volume-weighted average price of UXC shares.
- Pending all necessary approvals, the transaction would most likely be completed by February 2016.
Leveraging M&A to Best Serve Global Market
- Strength in Size: With almost 3,000 employees and annual revenue of A$686 million, UXC is Australia's largest publicly owned IT services company. But CSC is significantly larger, at $11.7B USD revenue and approximately 70,000 employees. The transaction builds CSC's presence in Australia and creates both an expanded portfolio of services to offer customers and a broadened industry reach.
- No Strangers to M&A, Part 1: Both CSC and UXC are no strangers to M&A. This deal is the third acquisition since August announced by CSC's commercial business, an $8.1B entity that in November will separate from CSC's government business, focused on the US public sector. CSC's government business announced in August a combination with $1.4B competitor SRA.
- No Strangers to M&A, Part 2: UXC, in the top 1 percent of Microsoft Dynamics resellers worldwide, has undergone many transactions including the acquisition of martinwolf client Tectura's North America operations in 2013. Last week, the company announced that it acquired divisions of New Zealand-based Koorb Consulting for an undisclosed amount.
For more information about this transaction
, click here to read the press release.
martinwolf was
not the advisor in this transaction.
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| About martinwolf
Walnut Creek, CA Bangalore, India
With offices in the San Francisco Bay Area and Bangalore, India, martinwolf is a leading middle market M&A Advisory focused on companies in the IT Services, IT Supply Chain, IT-Enabled Business Process Outsourcing and Software as a Service (SaaS) space. Since 1997, our team has completed more than 140 transactions in nineteen countries and sold seven divisions of Fortune 500 companies. The firm is also a presenting sponsor of the Global IT M&A Forum. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com. To learn more about martinwolf, contact Matthew Putzulu at [email protected]. © martinwolf 2015 |
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