DXC will pay $59.00 in cash for each Luxoft shares outstanding, representing an 86% premium to Friday's closing price of $31.70.
WTF 80% premium, that is crazy! They can afford to buy companies at 86% premium to what they are worth, but they can't give employee's a raise. F U, Mike L and your sl-- in HR
How about first paying loyal DXC employees $59 for every month they have endured by not receiving a pay rise or bonus?
Luxsoft has all of Mikey's wet dreams about it - slave labour teams in low cost centres working for a corporate entity that hides in a tax haven while its CEO hides as a non-dom in yet another tax haven.
You couldn't find a more 21st century example of the out of control excesses of capitalism than Luxsoft.
Its so good that Mikey cannot improve on it and left the Luxsoft CEO in charge of it separate from any other DXC line of service.
He's still asking for head count cuts though.
Have a look at the interviews and reviews on Glassdoor for Luxsoft. Holy moly, no wonder Mikey was entranced - a like minded CEO who treats his staff as soulless droids whilst bigging up the pig in a poke that his company actually is.
Yup. DXC has no heart or soul Thrre is no real reason why anyone working there would feel motivated enough to want to innovate because as soon as they do anything of merit the rug is pulled from beneath their feet and they are riffed.
I can’t thibk of any acquisition that has successfully grown or been leveraged correctly or scaled up. It’s just left to carry on as it did before with all company decisions over expenditure and investment withheld. Shut up! Bring in the revenue and hit these impossible targets and fill in all this red tape.
Welcome to the shawshank redemption but with a lot more 5hit and no ••••ing redemption!
@YjAiwYv-3tys its not just a DXC thing though, all of the big corporates acquire "exciting" startups with niche technology then fail to integrate them and usually the key people who were the creators and drivers of the tech itself leave because they don't like the corporate BS.
CSC bought several really good pieces of tech, which should have been useful across the business but basically just trashed it. ServiceMesh for example should have been truly game changing, but...
Luxsoft looks like a pile of random coding teams serving particular clients. It doesn't look like anything that is scalable or reusable anyway. All of the "value" in Luxsoft is really fleeting.
DXC are just buying revenue, that is all.
Then they will destroy it anyway.
Depends if the Luxsoft stock is worth $59. Luxsoft stock had fallen 29.2% in the 3 months before the deal and DXC's had falled 37.2%. Obviously investors think DXC can shift a lot a load of Luxsoft offerings out of the door. So in theory, the premium may have been worth it. No, employees don't benefit in monetary terms, that would be silly. As has been said by the senior folk: Employees are there to 'keep jobbing', right?
The real money goes to the top tier and investors not as thank you's for the staff who actually deliver.
Of course, as DXC lacks expertise in its ability to leaverage these acquired capabilities and skill base (even dismantling them in many cases!)
DXC now looks like several lego kits of different sizes and all the important parts have been riffed. Nothing joins up to allow modular building or scaling. DXC may have bought a swan (albeit a dying one when they bought it), but once stripped, it could turn into a new dead-duck offering with an over-inflated value.
Are you suggesting that maybe it is a 'shell company' and that it owns a small cubicle, locked by a dusty padlock in the basement of Tyson's corner? Are you implying that it is a special purpose entity being used to drive anonimity and possibly transfer assets from the old CSC/HPE corporations to the new name whilst leaving the liabilities under the old company names? Are you suggesting this would then allow the transfer of multiple corporate entities and assets into countries with a lower tax liability? Then you must also be suggesting that everyone's contract of employment and salary slips would have to remain in the old company names and no-one would be asked to sign new contracts of employment? Are you suggesting they rang the bell at Wall street to convince the media it was a new company comprising all previous entities like pen and teller might do when they want to create mis-direction?
You can't trust anywone these days. Even the flat earth society's own web page say they have offices 'all around the world'
My question is, are you sure this company is really existing, with real business, real customers, real headquarters, real activity.
If you Google it, you can think this company is a fake company, using tax heaven for a lot of "financial" activities, but not really for making IT business.
There is no issue at DXC rewarding success, you just need to be at the executive level, just look at the stock rewards from December 2018, it’s all a big game at these companies. Extract the maximum value to shareholders and fill your pockets while you do it. It’s nothing new however DXC seem to shine particularly bright with their poor treatment of staff.
Young folks - make time during business hours to skill up and move on to a future
Mature folks - same as above!
And you would have been sure if you spent 30 seconds Googling it
Yes I am sure
https://www.luxoft.com/pr/dxc-technology-to-acquire-leading-digital-innovator-luxoft/
Are you sure this company is really exisiting ?
It is disgusting, and yes DXC thrives on cuts and slave labor rates.
Just shows that the slave labor within DXC allows Mikey to buy companies at premium rates. The acquired companies are then gutted and the remaining value is used by DXC for whatever purpose.