DXC in Advanced Talks to Sell Insurance Software Unit

Mashrukh Khan: IT services firm DXC Technology is in advanced discussions to sell its insurance software and services division to private investment company Eldridge Industries for roughly $2.4 billion, according to people familiar with the matter as reported by Reuters. The potential transaction would mark a significant step in DXC’s ongoing effort to simplify its portfolio following several years of declining overall revenue.
The unit in question supplies policy administration systems along with other software and business process services to insurers operating across life, wealth, property and casualty lines. A sale would allow DXC to exit this global technology and outsourcing business and concentrate resources elsewhere.
Eldridge, for its part, is exploring the possibility of combining the acquired operations with Zinnia, its existing insurance technology platform that currently focuses on software and digital infrastructure for life insurance and annuity providers. Bringing the two together would create a larger provider offering software, administration and servicing capabilities at greater scale.
An agreement could be reached within the coming weeks, though the sources stressed that there is no certainty a deal will ultimately be finalized. Neither DXC Technology, Eldridge Industries nor Zinnia offered immediate comment on the reports.
The talks come as DXC continues to reshape its operations amid broader industry shifts in insurance technology, where demand for integrated platforms and digital services remains strong. The reported valuation of about $2.4 billion underscores the strategic interest in specialized insurance software assets at a time when private capital continues to seek scale in the sector.