DXC Technology acquires customer software developer Luxoft in $2bn deal

Luxoft has development offices across Eastern Europe and includes Boeing, Ford and Deutsche Bank among its clients

DXC Technology has agreed a $2bn deal to acquire custom software developer Luxoft.

Luxoft CEO Dmitry Loschinin will move over to DXC and continue to head-up the business, which will retain its brand. The organisation is expected to retain a high degree of autonomy.

"Luxoft and DXC are highly complementary, and our shared vision of digital transformation makes this strategic combination a great fit for both organizations - as well as enormously beneficial for our clients," said DXC CEO Mike Lawrie.

He continued: "Luxoft has a proven track record and expertise in producing measurable business outcomes at-scale for global clients across key industries, including automotive and financial services.

"The addition of Luxoft accelerates DXC's growth strategy as we equip the company to meet the digital requirements of our clients today and in the future."

"Its software development capability is an important part of the attraction, helping turn digital plans into tailored reality and contributing to an end-to-end service," according to TechMarketView analyst Angela Eager.

She continued: "The acquisition, which is expected to close in June, is part of DXC's rotation towards digital services and significantly will also bring in a fresh set of digital talent. For DXC, who has been cutting costs and taking out staff while struggling for growth, getting the right people in place is imperative."

Luxoft was established in Moscow in 1995 as the development centre of IT holding company International Business Systems (IBS), but shifted its headquarters to Zug, Switzerland in 2000. The company listed on the New York Stock Exchange (NYSE) in June 2013, but has around three-quarters of staff located in Ukraine and Russia.

It has development centres in Kiev, Odessa and Dnipro in Ukraine; and Moscow, St Petersburg and Omsk in Russia. In addition, it also has development centres in Bucharest, Romania; Penang, Malaysia; Ho Chi Ming City, Vietnam; Krakow, Wroclaw and Tricity in Poland; Sofia, Bulgaria; and, Guadalajara, Mexico.

Clients include Boeing, Ford and Deutsche Bank among 280 current active clients. Since floating in 2013, it has acquired a number of rivals, including Radius, Insys and Smashing Ideas in the US, and Excelian in the UK. The company achieved revenues of $911 million over its last four reported qua

Tysons, Virginia-based DXC Technology is a services behemoth formed from the merger of CSC, HPE Services and EDS. It has annual revenues of $24.55 billion and around 130,000 employees.

DXO CEO Mike Lawrie is an IBM veteran who was formerly chief executive of British software company Misys.