DXC Technology negotiates $2.4 billion sale of insurance software unit to Eldridge
DXC Technology is in late-stage talks to sell its insurance software and services division to private investor Eldridge Industries for roughly $2.4 billion.
DXC Technology is reportedly in advanced negotiations to divest its insurance software and services arm to Eldridge Industries for about $2.4 billion. The sale would combine DXC's policy administration systems and related business-process services with Eldridge's Zinnia platform, which supplies digital infrastructure to life insurance and annuity firms. The parties anticipate reaching an agreement within weeks, though a definitive deal is not assured.
This move follows DXC's broader effort to simplify its offerings after several years of revenue decline. By exiting the insurance technology segment, DXC hopes to focus on core IT services, while Eldridge seeks to build a scaled provider for insurers across multiple lines. Representatives for DXC, Eldridge and Zinnia declined to comment at the time of reporting.
Why it matters
The sale could reshape the market for insurance technology by creating a larger, integrated provider and help DXC refocus its business.
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