DXC Technology has entered into a definitive agreement to sell its U.S. State and Local Health and Human Services business to Veritas Capital for $5 billion in cash. The transaction is expected to close no later than December 2020.
“I’m pleased that we were able to identify such an outstanding home for our U.S. State and Local Health and Human Services business,” said Mike Salvino, DXC president and CEO. “DXC has built a unique capability that currently serves 42 states and territories with an incredibly experienced and dedicated workforce.”
The sale represents a transaction value of approximately 3.5 times trailing 12-month sales of $1.4 billion. Aftertax proceeds from the transaction are expected to be used to pay down debt, the company reported.
DXC Technology’s U.S. State and Local Health and Human Services business is an end-to-end provider of technology enabled, mission critical solutions fundamental to the administration and operations of health programs throughout the U.S.. The business facilitates performance efficiencies and improved outcomes for a wide range of stakeholders in the health care ecosystem.