DXC Technology, a global independent, end-to-end IT services and solutions company, has announced it is selling its healthcare providers software business to an Italian healthcare technology company in a cash deal worth US$ 525 million.
The deal will make US-based DXC healthcare provider software business a part of Florence, Italy-based Dedalus Group, which claims to be Europe’s leading healthcare and diagnostic software provider and one of the largest in the world.
DXC, which was formed in the 2017 merger of HPE Enterprise Services and CSC, has been looking since late last year to seek strategic alternatives for three of its businesses: its US, state, and local health and human services business; its horizontal business process services (BPS) business and its workplace and mobility business. Those businesses combined represented about 25% of DXC’s total revenue.
DXC declined to provide more information about the sale beyond the company’s press statement.
DXC’s healthcare provider software is currently used by over 1 million users, including users in 80% of the top 15 US-based Fortune 500 healthcare organisations, DXC claimed on its website. Those users are maintaining 100 million electronic health records.
The software business includes an open digital health platform DXC claims can help improve care outcomes with contextual and actionable insights.
Mike Salvino, President and CEO, DXC Technology, said in a statement that the deal will benefit DXC’s stakeholders, including customers and personnel.
“The sale of our healthcare provider software business to Dedalus is consistent with our strategy of focusing on the Enterprise Technology Stack and rationalising our portfolio,” he said.
DXC, which has been trying to sell off certain parts of the business accounting for about one-quarter of its total revenue, hopes to close on the US$ 525 million sale of the DXC healthcare provider software business by March 2021.
DXC Technology has its Middle East and Africa (MEA) operations head office based in Dubai, United Arab Emirates.