DXC Technology (NYSE: DXC) has spent 2020 trying to streamline its business portfolio. When Mike Salvino took over as CEO of DXC in September 2019, he announced during his first earnings call that the company was planning strategic alternatives, including the possible divestiture of three of its non-core assets, which made up roughly 25% of the company’s revenue. And last week, DXC announced another milestone in that campaign.
The company revealed it is selling its healthcare software provider business to Dedalus Group for $525 million. DXC’s healthcare software business is an open digital health platform that helps improve care outcomes by delivering contextual and actionable insights across the healthcare ecosystem. The deal will help DXC focus on its business across the Enterprise Technology Stack, a collection of end-to-end technology solutions and SaaS platforms.
Back in December 2019, Dedalus acquired Agfa-Gevaert HealthCare’s healthcare software business, which offers healthcare Information solutions, integrated care activities and imaging services, for $1.1 billion. With these two new additions to its portfolio, Dedalus Group will become one of the world’s leading, vertically focused healthcare IT businesses.
DXC’s first divestment of its campaign to unload non-core assets occurred back in March, according to DSO. The company sold its U.S. State and Local Health and Human Services business to Veritas Capital Management LLC for $5 billion. The state and local HHS business is an end-to-end provider of technology solutions critical to the administration and operations of health programs. The business facilitates performance efficiencies and improved outcomes for a wide range of stakeholders in the healthcare ecosystem. DXC stated it plans to use the proceeds to pay down debt.
