Atos makes $10bn offer for DXC

French services heavyweight reportedly eyeing up US competitor

French IT consulting and services giant Atos has reportedly launched a $10bn (€8.14bn) bid to takeover US rival DXC Technology.

The acquisitive Bezon-headquartered systems integrator spent 2020 making inroads into the US MSSP market with an earlier purchase of $29m-turnover MSSP Paladion.

It also spent $3.4bn in 2018, to buy Michigan-based IT services provider Syntel.

At the time, Atos said its acquisition strategy was to capture US market share.

A tie-up with DXC Technology would do so at a stroke.

Headquartered in Virginia, the former HPE business is a Fortune 500 company, which logged revenues of $19.5bn (€15.88bn) in its FY2020.

Meanwhile, Atos' FY2019 turnover was €11.58bn.

However, DXC has been saddled with mounting debts for years.

Last year, DXC sold off its state and local health and human services business to Veritas Capital for $5bn in cash, which it said would be used to make debt down payments.

It also confirmed it was looking to make divestments of two further business units for the same reason.

Atos is reported to have made a formal offer for DXC this week.

The French firm's play for DXC comes six weeks after French telecoms giant Orange publicly denied it too was in Atos' M&A crosshairs.

Rumours emerged after a French labour union called for the merger.

Atos and DXC have not responded to requests for comment.

DXC shares were up eight per cent in pre-market trading in New York, while Atos' fell 6.4 per cent.