IT and consulting services provider DXC Technology Co said it would buy software development company Luxoft Holding Inc for about $2 billion to expand its digital offerings to the financial and automotive sectors.
Luxoft shareholders will get $59 per share in cash, representing a premium of about 86 per cent to the company’s closing price on Friday.
The company’s shares were up 83 per cent at $58.02 in premarket trading, while DXC shares were flat.
The companies said shareholders representing about 83 per cent of Luxoft’s total voting power have endorsed the deal, resulting in obtaining the requisite Luxoft shareholder approval.
Luxoft will maintain its brand and will continue to be led by its Chief Executive Officer Dmitry Loschinin.
The deal is expected to close by June 2019.
Guggenheim Securities and BofA Merrill Lynch acted as financial advisers to DXC while Credit Suisse acted as financial adviser to Luxoft.
