Exclusive report - Sources say DXC is in advanced talks to sell its insurance software division for $2.4 billion.

Provided background information on the transaction and related companies.

Milana Vinn

Reuters New York, October 19 - According to sources familiar with the matter, 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.

Sources said Eldridge is considering integrating this business with its insurance technology platform Zinnia, which provides software and digital infrastructure for life insurance and annuity providers.

According to the sources, the two parties may reach an agreement in the coming weeks, but it is not certain whether the deal will be finalized. Because the negotiations are confidential, the sources requested anonymity.

DXC Technology, Eldridge, and Zinnia did not immediately respond to requests for comment.

For the information technology services provider, this transaction would be a major divestment, as after experiencing several years of declining revenue, DXC is working to streamline its business portfolio.

The sale will see DXC exit the business of providing technology and outsourcing services to global insurance companies, helping the IT services provider streamline its operations after several years of revenue declines. Its insurance division provides policy administration systems and other software and business process services for insurers in the life, wealth, property, and casualty insurance markets.

For Eldridge, the deal would combine Zinnia’s life and annuity technology platform with DXC Technology’s insurance software and business process services, creating a major provider of insurance software, management, and services technology.

(For the convenience of non-native English speakers, Reuters automatically translates its reports into several other languages. Because automated translations may contain errors or lack the intended context, Reuters does not guarantee the accuracy of the automated translation and provides it solely for reader convenience. Reuters accepts no responsibility for any damage or loss resulting from the use of automated translation functions.)