Luxoft's stock soars after DXC buyout deal valued at $2 billion, or 86% premium
Shares of Luxoft Holding Inc. rocketed 83% in premarket trade Monday, after the technology services and consulting company agreed to be acquired by DXC Technology Co. in a deal valued at $2 billion. DXC's stock rallied 4.7% ahead of the open. Under terms of the deal, DXC will pay $59.00 in cash for each Luxoft shares outstanding, representing an 86% premium to Friday's closing price of $31.70. DXC expects the deal to close by June 2019, with revenue synergies expected to come from cross-selling Luxoft's offerings. "Luxoft and DXC are highly complementary, and our shared vision of digital transformation makes this strategic combination a great fit for both organizations -- as well as enormously beneficial for our clients," said DXC Chief Executive Mike Lawrie. Luxoft's stock has tumbled 29.2% over the past three months through Friday and DXC shares have plunged 37.0%, while the S&P 500 has lost 12.3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.