Veritas Capital Strikes $5B Cash Deal for DXC’s State & Local Health Business; Ramzi Musallam Quoted

Veritas Capital has agreed to buy DXC Technology’s (NYSE: DXC) U.S. state and local health and human services business for $5B in cash.

The transaction is expected to be completed by December, subject to regulatory approvals, receipt of third-party consents and other customary closing conditions, DXC said Tuesday.

DXC’s state health business provides mission-critical, technology-enabled platforms supporting the operations and administration of U.S. health programs and other public sector clients.

Ramzi Musallam, CEO and managing partner of Veritas and a 2020 Wash100 award winner, said Veritas looks forward to welcoming DXC’s state health business and its workforce into its portfolio as the private investment firm works to build on the business’ commitment to delivering mission-critical health technology and quality health care to U.S. citizens.

DXC will maintain its remaining health care practice upon the deal’s closing and use the after-tax proceeds from the sale to pay down debt.

J.P. Morgan and Guggenheim Securities advised DXC on the deal’s financial aspect, while Latham & Watkins acted as legal adviser. Goldman, Sachs & Co. and Schulte, Roth & Zabel respectively served as Veritas Capital’s financial and legal advisers in the transaction.