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- DXC Technology is negotiating the sale of its insurance software and services division to Eldridge Industries for approximately $2.4 bn.
- Eldridge is considering combining the business with Zinnia, its insurance technology platform serving life insurers and annuity providers.
- The potential divestiture would support DXC’s efforts to simplify its business portfolio following several years of declining revenue.
DXC Technology is in advanced discussions to sell its insurance software and services business to private investment firm Eldridge Industries for approximately $2.4 bn, according to people familiar with the negotiations.
According to Reuters, the proposed transaction could result in the business being combined with Zinnia, Eldridge’s insurance technology platform, which provides software and digital infrastructure to life insurance and annuity providers.
An agreement could be reached within the coming weeks, although the discussions remain ongoing and there is no guarantee a transaction will be completed, the sources told Reuters, requesting anonymity because the negotiations are confidential.
DXC Technology, Eldridge Industries and Zinnia did not immediately respond to requests for comment.
DXC Technology seeks to streamline insurance software operations
The potential sale would represent a substantial divestiture for DXC Technology as the IT services provider works to simplify its business portfolio following several years of declining revenue.
DXC’s insurance division supplies technology, software and business process outsourcing services to insurers worldwide. Its offerings include policy administration systems and supporting services across life insurance, wealth management, property and casualty insurance markets.
Selling the division would allow DXC to exit these insurance-specific operations and concentrate its business portfolio.
Eldridge could combine DXC insurance business with Zinnia
For Eldridge Industries, the proposed acquisition would provide an opportunity to expand Zinnia’s existing insurance technology operations.
Zinnia currently focuses on software and digital infrastructure for life insurance and annuity providers. Combining it with DXC’s insurance technology business would bring together Zinnia’s platform with DXC’s broader software, policy administration and business process services.
The resulting business would have a larger operating scale and offer insurers a wider range of administration, servicing and technology capabilities.
The potential integration remains dependent on the outcome of the negotiations, with neither the acquisition nor the proposed combination formally agreed.
