DXC in Talks to Sell Insurance Software Unit to Eldridge for $2.4 Billion, More Than Its Own Market Value

Reuters reported on Monday, October 19, 2026 that DXC Technology is in advanced talks to sell its insurance software and services business to Eldridge Industries for about $2.4 billion, citing people familiar with the matter. DXC stock closed the regular session at $14.28, up 4.81% from Friday's $13.62, after trading as high as $15.20 in the minutes after the report.

No agreement has been announced. The people told Reuters a deal could come in the coming weeks but is not certain, and that Eldridge is discussing combining the business with Zinnia, its software platform for life insurance and annuity companies.

A unit priced at about the whole company's market value

The insurance business brought in about a tenth of DXC's revenue last quarter, yet the reported price is a little more than the stock market value of all of DXC. At Monday's close and the roughly 160.9 million shares DXC had outstanding on June 30, the company was worth about $2.3 billion on the stock market. That figure is our calculation from the share count in DXC's quarterly report. It leaves out DXC's debt, which a buyer of the whole company would also take on.

Book-to-bill compares new contracts signed with revenue billed in the same period, so a reading below 1 means the unit signed less new work than it billed. DXC said software revenue inside the segment grew 13% in the June quarter while services revenue fell about 1%, partly because a business process services contract was winding down. Zinnia, the platform Eldridge may combine it with, also sells software to life insurers and annuity companies.

A 2024 sale process for the same unit

In June 2024, Reuters reported that DXC was running a separate process to sell the insurance software business for more than $2 billion, at the same time as Apollo Global Management and Kyndryl discussed a joint bid for the whole company at $22 to $25 per share. Neither deal was completed: DXC is still listed and still reports the insurance unit. DXC closed Monday at $14.28 a share, well below that 2024 range, which is why a $2.4 billion sale of one unit now looks large against the company's market value. Reuters said DXC wants a simpler business after several years of falling revenue. Total revenue fell 5.1% to $3.00 billion in the June quarter, and the company guided fiscal 2027 revenue to between $12.10 billion and $12.35 billion.

How the stock moved

DXC was already trading near $14.77, about 8.4% above Friday's close, when the report reached the MoveSurge news feed at 12:53:52 ET. A minute later it was $15.20, up 2.91% from that level and about 11.6% above Friday's close. Ten minutes after the report the stock had slipped to $14.295, 3.22% below the price just before it, and at 13:05 ET it was $14.22, down 3.72% from that level but still well above Friday's close.