DXC Technology Company is negotiating to sell its insurance software and business process services division to private investment firm Eldridge Industries for approximately $2.4 billion, according to Reuters on October 19, 2026. Eldridge plans to combine the unit with Zinnia, its existing insurance technology platform. The transaction transfers policy administration systems and artificial intelligence applications currently used by life and property carriers to the private investment group.
Divesting the specialized financial software division allows DXC to shed a business that generates distinct margin profiles from its core enterprise technology outsourcing operations. Private equity buyers pursuing software assets in the financial services sector are prioritizing stable recurring revenues attached to mission-critical infrastructure over speculative growth. Consolidating the DXC unit with Zinnia provides the buyer with immediate scale in back-office administration systems that carriers find difficult to replace.
The division under negotiation produced $1.28 billion in revenue during fiscal 2026, comprising roughly 10 percent of DXC’s $12.64 billion total top line, according to Benzinga on October 19, 2026. While the unit achieved 5.4 percent year-over-year reported revenue growth, its operating profit fell 20.4 percent to $129 million in the same period. The business posted a book-to-bill ratio of 0.76, indicating that current period billing outpaced new contract signatures.
Deal terms at a glance
| Term | Details |
|---|---|
| Parties | DXC Technology Company (Seller); Eldridge Industries (Buyer) |
| Price | $2.4 billion (Reuters, October 19, 2026) |
| Implied equity value | Not disclosed (Reuters, October 19, 2026) |
| Implied enterprise value | Not disclosed (Reuters, October 19, 2026) |
| Consideration | Not disclosed (Reuters, October 19, 2026) |
| Premium | Not applicable (divestiture of a private business unit) |
| Financing | Not disclosed (Reuters, October 19, 2026) |
| Conditions | Subject to final agreement (Reuters, October 19, 2026) |
| Expected timetable | Agreement possible within coming weeks (Reuters, October 19, 2026) |
Advisers
The financial advisers acting for DXC Technology Company are not disclosed, according to Reuters on October 19, 2026. The financial advisers representing Eldridge Industries and its portfolio company Zinnia are not disclosed. Legal advisers for all parties involved in the transaction are not disclosed, according to Reuters on October 19, 2026.
How the deal came about
Eldridge Industries initiated negotiations to acquire the business unit to merge the operations with Zinnia, an existing insurance technology platform backed by the private investment firm. Zinnia provides digital infrastructure and software to life insurance and annuity carriers, according to Reuters on October 19, 2026. The proposed acquisition targets DXC’s specific capabilities in policy administration systems, artificial intelligence software solutions, and business process outsourcing.
DXC Technology holds a varied portfolio of enterprise IT services and consulting practices. The insurance software and services segment functions as a distinct operational unit within the broader corporate structure. The segment provides specialized tools across life, wealth, and property and casualty insurance markets, according to Benzinga on October 19, 2026. DXC Technology has not issued a regulatory disclosure on Form 8-K regarding the transaction, according to the United States Securities and Exchange Commission database and DXC Technology Investor Relations as of October 20, 2026. DXC Technology, Eldridge Industries, and Zinnia declined to comment on the negotiations, according to Reuters on October 19, 2026. No competing trade buyers or private equity suitors have emerged in public reports, according to Reuters on October 19, 2026.
Valuation and comparables
The $2.4 billion headline transaction value implies a valuation multiple of approximately 1.9x the segment’s fiscal 2026 revenue of $1.28 billion, according to Benzinga on October 19, 2026. The division recorded an operating profit of $129 million for fiscal 2026, representing a 10.1 percent operating profit margin, according to Benzinga on October 19, 2026. Enterprise value-to-EBITDA multiples, enterprise value-to-EBIT multiples, and net asset values are not disclosed in public reporting, according to Reuters and Benzinga on October 19, 2026. Specific comparable transactions and their corresponding valuation multiples in the insurance software sector are not disclosed in the primary reports covering this negotiation.
Financing and structure
Eldridge Industries intends to execute the transaction by integrating the DXC unit directly into the Zinnia corporate structure, according to Reuters on October 19, 2026. The specific breakdowns of the $2.4 billion purchase price between cash, seller notes, equity rollover, or earnout provisions are not disclosed, according to Reuters on October 19, 2026. Specific debt syndication packages, lender commitments, or sponsor equity checks funding the Eldridge purchase are not disclosed, according to Reuters on October 19, 2026. DXC Technology held $1.96 billion in cash and cash equivalents on its own balance sheet as of June 30, 2026, according to Benzinga on October 19, 2026.
Risks, conditions and key dates
- June 30, 2026: DXC Technology reported holding $1.96 billion in cash and cash equivalents on its balance sheet (Benzinga, October 19, 2026).
- October 19, 2026: Reuters reported advanced negotiations between DXC Technology and Eldridge Industries for the $2.4 billion sale.
- October 19, 2026: Sources confirmed that discussions remain confidential and carry no certainty that the parties will sign a definitive agreement (Reuters, October 19, 2026).
- October 20, 2026: No formal 8-K filings or public announcements appeared on the Securities and Exchange Commission database or company investor relations portals (SEC, October 20, 2026).
Antitrust reviews, regulatory clearances, or shareholder voting conditions required to close the transaction are not disclosed, according to Reuters on October 19, 2026. Expected completion dates and closing milestones are not disclosed, though an agreement could materialize in the coming weeks, according to Reuters on October 19, 2026.
Where reports disagree
News organizations report identical figures regarding the transaction value. Reuters, Benzinga, and GuruFocus all cite the purchase price under negotiation as approximately $2.4 billion in their respective reports published on October 19, 2026.
Financial publishers diverge on the public market reaction to the news leak. MT Newswires reported on October 19, 2026, that DXC Technology shares rose 3.7 percent in afternoon trading following the initial publication. GuruFocus reported on the same date that DXC shares jumped by as much as 10 percent in response to the divestiture reports.
Sources
Company and regulator filings
Press and analysis
- Benzinga, DXC Technology Eyes 2.4 Billion Insurance Unit Sale to Eldridge
- GuruFocus, DXC Technology Nears 24B Insurance Unit Sale Shares Jump 10 DXC
Facts as of 20 October 2026.
