DXC Technology to pursue strategic alternatives for three businesses
Says as part of exploration of strategic alternatives, it is putting up for sale three businesses: the U.S. state and local health and human services business, the horizontal BPS business, and the workplace and mobility business. Says assuming that the sale of the three businesses, which combined represent about 25% of DXC's total revenue, will be able to generate net capital proceeds of roughly $5B. Says by executing strategic alternatives, it will create a "more focused portfolio," and that excluding those three businesses, by FY22 it would expect the company to have more than $15B of revenue, with at least half of the revenue coming from digital offerings. Says expects to eploy $4.25B or more to repurchase shares and pay dividends over the next ten quarters. Says expects to redecue debt by over $2.5B as the company continues to pursue a "balanced capital allocation approach and protect" its investment grade credit profile with the target debt to EBITDA of two times or less in FY22. Says in FY22 expects at least $7 per share of adjusted EPS and at least $5.25 of EPS after restructuring, transaction and integration costs. Comments taken from Q2 earnings conference call.