CSC has announced it has entered into exclusive negotiations to acquire Australian IT services vendor UXC for AU$1.26 per share, a purchase price of ~AU$428m (~US$300m). The transaction is subject to completion of a five-week exclusive due diligence process. CSC expects it to be finalized by February 2016. UXC is one of Australia’s largest independent publicly-owned IT services vendo[...]

Along with its Q1 FY 2016 results today (see here) CSC has announced its intended acquisition of Fixnetix, a London-based provider of front-office managed trading solutions with 120 employees and offices in London, New York, Boston, Chicago and Tokyo. Founded in 2006, VC-backed Fixnetix provides and operates specialist trading infrastructure for ultra-low latency trading. It claims its iX-[...]

Cognizant Q2 2015 results: Revenues were $3,085.1m, up 22.6% y/y, and up 25.5% in CC EBIT margin was 17.7%, down 171 bps y/y but up 50 bps sequentially Adjusted EBIT margin was 19.8%, down 122 bps y/y, but the same as in Q1 Non-GAAP operating margin, which excludes stock-based compensation expense and acquisition related expenses, was 20.2%, slightly above the target range of 19% to 20[...]

Last week, the US Department of Defense awarded a long-awaited multi-billion dollar contract to Leidos, Cerner and Accenture to provide and implement an off-the shelf EHR system across the Military Health System. The ID/IQ contract has a ceiling of just over $4.33bn. It has a two-year base with two three-year extension options, and a possible two-year award term, making a total period of up to ten[...]

"We are making progress in some areas, but we know we can and should do better in other areas. Our direction is unchanged; we are making several shifts in the way that we execute against it” Ursula Burns. On Friday, Xerox announced results for Q2 2015 (for full details, see here): Xerox Services revenues were $2,569m, down 3.1% y/y (on continuing operations), up 1% in CC Segm[...]

Infosys Q1 FY 16 results: Revenues were $2,256m, up 5.8% year-over-year (y/y) as reported, up 10.9% in constant currency and up 4.5% sequentially Operating income (EBIT) was $541m, a margin of 24.0%, a y/y decrease of 115 bps, and a sequential decrease of 173 bps. See here for the full results "I’m very pleased with our overall performance for the quarter” sai[...]

Key features of Wipro Q1 FY16 results:                                                                                                      [...]

On July 3, Infosys announced it has been awarded a multi-year application development and management (ADM) services contract by Allied Irish Banks (AIB). As a strategic partner to AIB, Infosys will: Provide application development and management, and transformation and innovation services Set up a 200-seat facility in Dublin to house staff who will be transferring from [...]

HP Separation Steaming Ahead (see our initial comments on the news of the HP break up here:) At the HP Discover event in Las Vegas earlier this month, the last before the break up of goliath HP into two organizations - HP Enterprise (HPE) and HP Inc. (HPI) - CEO Meg Whitman (the future CEO of HPE) took pains to highlight the progress that has been made in preparing for and organizing the sep[...]

Summary: While 2014 was a “transformational year” for Atos MS and Worldline businesses, Atos’ C&SI business has also been reinventing itself. 2014 saw good progress against nearly all of the unit’s three year financial targets Atos C&SI has been making substantial investments to strengthen its capabilities to support clients in their digital transformation a[...]

NelsonHall recently attended an EXL advisor and client event in London. What a difference in 18 months! Back in November 2013, EXL received a notice of termination from its largest client at the time (an event that was unfortunate, but not due to under-performance). The impact of this on 2014 results was significant: a $38m reduction in revenues from this client[...]

HP Enterprise Services has announced Q2 FY 2015 results, for the period ending April 30, 2015: Revenue was $4,817m, down 15.5% y/y, and down 10% in constant currency (CC), reflecting key account run off and weakness in EMEA Segment earnings before taxes (EBT) were $194m, a margin of 4.0%, up 143 bps y/y. Q2 FY 2015 revenue by service line (with y/y revenue growth) was: [...]

CSC has announced a planned break up by October 25 2015 into two firms: CSC U.S. Public Sector (FY 15 revenues: $4.1bn) and CSC Global Commercial ($8.1bn, also includes non-U.S. public sector). See here for details: The announcement ends a long period of speculation over the posssible sale of CSC's North American Public Sector unit[...]