DXC in talks to sell insurance software unit to Eldridge for $2.4 billion

DXC Technology is negotiating a possible sale of its insurance software and services division to Eldridge Industries, according to people familiar with confidential discussions cited by Reuters. The deal could value the unit at roughly $2.4 billion, but an agreement may still collapse.

Eldridge is considering combining the business with Zinnia, its insurance-technology platform for life insurers and annuity providers. DXC’s unit serves life, wealth, property and casualty markets with policy systems and business-process services.

For DXC, the proposed disposal would narrow a portfolio that has faced years of declining revenue. For Eldridge, it could create a larger insurance technology provider.

Because the report relies on anonymous sources and no agreement was signed, the valuation and timetable remain prospective.

The report does not say which insurers or contracts are included, and it gives no purchase-price structure. Any separation would also require customer, employee and technology-transition arrangements that are not yet public.

Image: Courtesy of DXC Technology.

Sources

• Reuters