NEW YORK & TYSONS, Va.--(BUSINESS WIRE)--DXC Technology (NYSE: DXC) today announced that it has completed the sale of its U.S. State and Local Health and Human Services business to Veritas Capital, a leading investor in government and healthcare technology businesses, to form Gainwell Technologies.
DXC intends to use the net proceeds from the $5 billion cash consideration to strengthen its balance sheet and reduce debt by about $3.5 billion. Following the repayment of debt, DXC will have approximately $6.0 billion of total debt on its balance sheet and net-debt of about $3.0 billion.
“On behalf of everyone at DXC, I would like to thank our people who are joining Gainwell for their service and commitment to DXC. I would also like to thank our customers who are in great hands going forward,” said Mike Salvino, President and CEO, DXC. “I am very pleased that we have delivered on our plan in completing this transaction, which strengthens our balance sheet and allows us to bring the ‘new DXC’ to the market. Our focus on our people and our customers combined with our improved financial flexibility better positions DXC for long-term success.”
“Today marks the beginning of an exciting new chapter for Gainwell, and we thank DXC for its partnership and stewardship in establishing the company as a true technology leader,” said Ramzi Musallam, CEO and Managing Partner of Veritas Capital. “With the invigoration and focus of a standalone company, Gainwell is poised as an innovative partner in the evolving healthcare technology market. We are proud to build upon Gainwell’s deep heritage and experience to continue to support clients in achieving essential outcomes in their communities nationwide.”
Gainwell will operate as a standalone company with over 7,500 employees who support clients across 42 U.S. states and territories with offerings including Medicaid Management Information Systems (MMIS), fiscal agent services, program integrity, care management, immunization registry and eligibility services. With over 50 years of proven experience, Gainwell carries forward a reputation for technological innovation, service excellence and unparalleled industry expertise in offering clients scalable and flexible solutions for their most complex challenges. For more information on Gainwell, visit www.gainwelltechnologies.com.
About Veritas Capital
Veritas is a leading private investment firm that invests in companies that provide critical products and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide, including those operating in the healthcare, aerospace & defense, software, national security, communications, energy, government services and education industries. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means. For more information on Veritas, visit www.veritascapital.com.
About DXC Technology
DXC Technology (NYSE: DXC) helps global companies run their mission critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. With decades of driving innovation, the world’s largest companies trust DXC to deploy our enterprise technology stack to deliver new levels of performance, competitiveness and customer experiences. Learn more about the DXC story and our focus on people, customers and operational execution at www.dxc.technology.
