Filing Flows › DXC Technology (DXC) › Takeover & LBO
Is DXC Technology (DXC) a takeover target?
A leveraged buyout at today's price plus 30% ($19.16 a share) would return about 34% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $31.11 a share (111% against today's $14.74). Historically 6.0% of companies with its figures were bought within a year (1.19× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $19.16 | today's $14.74 plus 30% |
| × shares | 162.0 million | |
| = Equity value | $3.1B | |
| + Debt refinanced | $3.1B | |
| − Cash | $1.6B | |
| + Other claims | $262M | preferred stock, minority interests |
| = Enterprise value | $4.8B | 2.5× EBITDA of $2.0B |
| Fees | $96.5M | 2% of the price |
| New debt | $3.1B | 1.6× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $1.8B | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $12.0B | $1.9B | $240M | $1.2B | $1.9B |
| Year 2 | $11.8B | $1.9B | $144M | $1.3B | $589M |
| Year 3 | $11.9B | $1.9B | $45.1M | $1.4B | $0 |
| Year 4 | $12.0B | $1.9B | $0 | $1.4B | $0 |
| Year 5 | $12.4B | $2.0B | $0 | $1.4B | $0 |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 2.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $4.1B | |
| − Debt left | $0 | |
| + Cash built up | $3.6B | |
| = Buyer's equity | $7.7B | |
| Money multiple | 4.33× | on $1.8B put in |
| Buyer's yearly return (IRR) | 34.1% |
Price against return
What the buyer makes at other premiums over today's $14.74; the IRR reaches 20% at $31.11 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $16.21 | 38.2% |
| 20% | $17.69 | 36.1% |
| 30% | $19.16 | 34.1% |
| 40% | $20.64 | 32.2% |
| 50% | $22.11 | 30.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $12.4B | |
| EBITDA, last 12 months | $2.0B | 15.9% of revenue |
| Depreciation and amortization | $1.1B | |
| Capital spending | $258M | |
| Debt | $3.1B | |
| Cash | $1.6B | |
| Share price | $14.74 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows -2.8% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 30% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, DXC Technology would cost about $19.16 a share, $3.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $16.51 | $2.7B |
| Median | 30% | $19.16 | $3.1B |
| High end (a quarter paid more) | 31% | $19.31 | $3.1B |
The odds, from history
Historically 6.0% of companies with its figures were bought within a year (1.19× the average). Its figures put it in decile 8 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
DXC Technology's latest quarter
DXC Technology, Q2 FY27: revenue $3.0B (-4% year over year), operating margin 6.2%, net earnings $24.0M, operating cash flow $217M. The chart follows the revenue to costs, profit and cash.
Questions
Is DXC Technology being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy DXC Technology?
A leveraged buyout at today's price plus 30% ($19.16 a share) would return about 34% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $31.11 a share (111% against today's $14.74).
What would a takeover of DXC Technology cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, DXC Technology would cost about $19.16 a share, $3.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.