Veritas Capital Strikes $5B Cash Deal for DXC’s State & Local Health Business; Ramzi Musallam Quoted

Jeff Brody
Ramzi Musallam

Veritas Capital has agreed to buy DXC Technology’s (NYSE: DXC) U.S. state and local health and human services business for $5B in cash.

The transaction is expected to be completed by December, subject to regulatory approvals, receipt of third-party consents and other customary closing conditions, DXC said Tuesday.

DXC’s state health business provides mission-critical, technology-enabled platforms supporting the operations and administration of U.S. health programs and other public sector clients.

Ramzi Musallam, CEO and managing partner of Veritas and a 2020 Wash100 award winner, said Veritas looks forward to welcoming DXC’s state health business and its workforce into its portfolio as the private investment firm works to build on the business’ commitment to delivering mission-critical health technology and quality health care to U.S. citizens.

DXC will maintain its remaining health care practice upon the deal’s closing and use the after-tax proceeds from the sale to pay down debt.

J.P. Morgan and Guggenheim Securities advised DXC on the deal’s financial aspect, while Latham & Watkins acted as legal adviser. Goldman, Sachs & Co. and Schulte, Roth & Zabel respectively served as Veritas Capital’s financial and legal advisers in the transaction.

You may also be interested in...

William Conley CTO Mercury Systems

Mercury Systems’ William Conley Joins NDIA Central Georgia Chapter Board

William Conley, chief technology officer of Mercury Systems (Nasdaq: MRCY), has been named to the board of directors for the National Defense Industrial Association's Central Georgia chapter. He will serve as a board member for a term of up to six years, Mercury Systems said Thursday.

Cloud IT

DHS Posts $3B Data Center, Cloud Solicitation

The Department of Homeland Security has issued a request for proposals for its indefinite-delivery/indefinite-quantity Data Center and Cloud Optimization contract worth potentially $3.35B over 10 years.