DXC in advanced talks to sell insurance software unit for $2.4 billion, sources say

DXC Technology

Mon 18:30

Deal could value DXC insurance software and services division at about $2.4 billion
Eldridge discusses combining business with Zinnia, sources say
Sale would advance DXC's portfolio streamlining after years of revenue declines
Adds background about the transaction and the companies
By Milana Vinn
NEW YORK, Oct 19 (Reuters) - IT services company DXC Technology DXC.N is in advanced talks to sell its insurance software and services division to private investment firm Eldridge Industries for about $2.4 billion, according to people familiar with the matter.
Eldridge is discussing combining the business with Zinnia, its insurance technology platform that provides software and digital infrastructure to life insurance and annuity providers, the sources said.
An agreement could be reached in the coming weeks, although there is no certainty a deal will be finalized, the people said, requesting anonymity because the discussions are confidential.
DXC Technology, Eldridge and Zinnia did not immediately respond to requests for comment.
The transaction would mark a significant divestiture for DXC as the information technology services provider seeks to streamline its portfolio after several years of declining revenue. 
The sale would allow DXC to exit a business that provides technology and outsourcing services to insurers globally, helping the IT services provider streamline its operations after several years of declining revenue. Its insurance division offers policy administration systems and other software and business process services to insurers across life, wealth, property and casualty markets. 
For Eldridge, a transaction would combine Zinnia's life and annuity technology platform with DXC Technology's insurance software and business-process services operations, creating a scaled provider of software, administration and servicing technology for insurers.

 (Reporting by Milana Vinn in New York; editing by Echo Wang, Chizu Nomiyama and Nick Zieminski)
 ((Contact Milana via Signal @MilanaVinn.01 or at milana.vinn@tr.com))