DXC enters talks to sell insurance division to Eldridge for about $2.4bn
Eldridge is discussing combining the division with Zinnia, its technology platform for life insurance and annuity providers, Reuters reported.
DXC Technology is in advanced talks to sell its insurance software and services division to Eldridge Industries for about $2.4bn, Reuters reported on 19 October, citing people familiar with the matter.
The potential buyer is discussing combining the division with Zinnia, its insurance technology platform for life insurance and annuity providers, according to the report. The talks matter to insurers because DXC's division supplies systems and services used to administer policies across several insurance markets.
DXC's business provides policy administration systems, other software and business process services. It serves insurers operating in life, wealth, property and casualty markets.
An agreement could be reached in the coming weeks, Reuters reported. The people who provided the information requested anonymity because the discussions are confidential.
Eldridge is a private investment firm. Zinnia is its insurance technology platform for life insurance and annuity providers.
The outcome remains uncertain. Reuters said there was no certainty that the parties would finalise a deal. DXC, Eldridge and Zinnia did not immediately respond to the news agency's requests for comment.
A combination would bring DXC's insurance software and business process operations together with Zinnia's software and digital infrastructure for life and annuity providers. Reuters described the proposed combination as creating a scaled provider of software, administration and servicing technology for insurers.
The businesses would contribute different parts of that offering. DXC's division spans policy software and business process services across four insurance markets, while Zinnia focuses its software and digital infrastructure on life insurance and annuity providers.
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Sources
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