March 10, 2020 / 8:48 PM / 19 days ago

DXC Technology to sell healthcare unit for $5 billion to Veritas Capital

(Reuters) - IT and consulting services provider DXC Technology (DXC.N) said on Tuesday it will sell its healthcare technology business to private equity firm Veritas Capital for $5 billion in cash.

Shares of the company soared 34% to $22 in extended trading.

DXC in November last year said it was exploring options for three of its non-core assets, including its U.S. State and Local Health and Human Services business.

The company will retain its healthcare business that includes servicing customers from life sciences firms, it said.

The deal is expected to close by December.

Guggenheim Securities and J.P. Morgan were the financial advisers and Latham & Watkins LLP was the legal adviser to DXC. Goldman Sachs and Co LLC was the financial adviser to Veritas Capital and Schulte, Roth and Zabel was its legal adviser.

Separately, DXC also pulled its prior forecast for fiscal year 2022, citing the volatile market environment.

Reporting by Shradha Singh and Munsif Vengattil in Bengaluru

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