Bob Scott reporting in his weekly Insights column.
IT giant CSC has offered to buy Australian technology company UXC. The offer is for $1.28 per share for UXC, whose UXC Eclipse is its Dynamics reselling arm. That would appear to be about $305 million in cash for all shares, based on the shares outstanding when the UXC year ended on June 30. CSC had $11.7 billion in revenue for the year ended July 3 and UXC Eclipse had $125 million in revenue for its last full year, so it would be a bit swallowed up. The total for UXC for fiscal 2015 was about $230.2 million. The UXC board said it “has determined that it is in the interests of its shareholders to engage further with CSC with a view to finalizing an agreement to implement the proposed transaction.” And UXC managing director Cris Nicolli took it a step further declaring: “The Board of UXC is supportive of this move”, assuming he means supportive of a possible takeover and not just investigating it. In February, Nicolli said the company wants to hit $100 million Australian in the United States—about $78 million at that time. It says it has a strong business in retail with Dynamics AX.