Is this going to get acquired, seems to be one of those where valuation don't match performance...
What do you guys know/think?
10 replies (most recent on top)
@1xtv+1iEfs65j it appears that way now but Kyndryl is expecting revenue to decline untill 2025 & 2026. Something with Conduent and ATOS. At this point we have to accept the reality that the infrastructure market is just overcrowded and a couple of these buisnesses need to die for the rest to survive. Question is who drops first? As dysfunctional as DXC is my money is on ATOS they look like road ki-l.
You could make the case that each company continues to exist, but only as a company specializing in a NICHE part of the market. That would involve trading manpower and customer sets, but if you become a specialist, it’s a whole lot easier to compete against the hyperscalers as you would evolve to have NICHE specialties that the hyperscalers would not have invested in. NOTE the niche companies would have to trim manpower to become efficient as right now, all three companies are over their optimum
Unless they merge with a top management team who can kick this lot out and get a group who know what they are doing - which is never going to happen - given kyndryl’s own problems, then I think it would just be a case of these two companies merging just bleeding together or as it will become: a bleeding mess.
So the real question is what does DXC want to be when it grows up. Is the exec management just breaking the company up and selling off its parts, are they truly trying to form a partnership and trading one piece of the company that has value but not much future due to competition and expertise for another piece of a company that has a future and thus a strategy going forward as the “new DXC” (midrange Kyndryl competitor), or are they going to be just another body shop. If you do the manpower vs revenue compare to Kyndryl, DXC is way over manned. (122k per person vs Kyndryl’s 210k). IBM’s plan is to try and get to 300-325k per person. Given that Kyndryl separated at 210k and is trimming, the 210k looks fairly firm. Is DXC going to be the 125k per person outsourcer for both IBM and Kyndryl, or will they trim up GIS to get to 210k and compete with Kyndryl? As it stands today DXC has to do something to stop the bleeding
It’s more likely that DXC with purchase or merge with IBMs infra platform spin off Kyndryl as they are more aligned to DXC ( and they have been cost cutting also according to layoff) and kyndryl / IBM already have fingers in some of the accounts we have
No company that performs any degree of due diligence for any M&A Will buy DXC. There may be someone who’s willing to buy one or more elements of DXC, but the whole company is so toxic that I can’t imagine anyone buying it except as a way of acquiring new clients.
No company that performs any degree of due diligence for any M&A Will buy DXC. There may be someone who’s willing to buy one or more elements of DXC, but the whole company is so toxic that I can’t imagine anyone buying it except as a way of acquiring new clients.
IBM is the rumor yes but there's really no hard evidence except DXC canceling the anaylist call. Its also possible that the German banks deal is closed so that may have caused the cancelation aswell.
All losers will be dumped and the hard working crew will be merged with the other company - Operation Tyson's bridge.
Rumor is IBM this time imo too exp