DXC Technology Japan Supports Proposed Acquisition of Japan Systems Co. Ltd. by The Longreach Group

Three-decade partnership between DXC and Japan Systems to continue

Tokyo, Japan, December 24, 2020 -- DXC Technology Japan Ltd. (“DXC Japan”), a subsidiary of DXC Technology (NYSE: DXC) (“DXC”), today announced its support for the proposed acquisition of Japan Systems Co. Ltd. (Japan Systems) by a company formed by the institutional private equity firm The Longreach Group (“Longreach”).  DXC is the majority shareholder of Japan Systems with approximately 54% of the voting shares of the company, which is listed on the Tokyo Stock Exchange.  DXC has signed an exclusive agreement to commit to sell all DXC holdings of its Japan Systems subsidiary’s shares in support of the Longreach sponsored acquisition of Japan Systems. 

“We fully support the proposed acquisition of Japan Systems by Longreach.  This strategic decision serves the best interests of Japan Systems’ employees, customers and partners as well as DXC,” said Nozomu Nishikawa, general manager and representative director of DXC Japan.  “Longreach’s strong experience and success in nurturing and investing in acquired businesses in Japan will help write the next chapter of growth for an independent Japan Systems and its people, whose focus is on onshore delivery of its specialized services to Japan-based customers such as local government and domestic system integrators. 

“DXC remains committed to investing in the Japan market to better serve its customers and people, leverage its global capabilities and expand its presence in Japan.  The ‘new DXC’ focus is to deliver solutions to its global customers across the Enterprise Technology Stack—from analytics and engineering, applications, cloud and security, modern workplace, and IT outsourcing—and its customers and people in Japan are important to the company’s transformation journey.  Both DXC and Japan Systems have different strategic focus areas, and the proposed acquisition further reaffirms our strategy, as it enables both DXC and Japan Systems to achieve growth with clear differentiation in target markets and service delivery models.”

DXC intends to continue its three-decade partnership with the Longreach-led Japan Systems.  Additionally, a pension fund affiliate of DXC will be a passive minority investor in the Longreach-led acquisition of Japan Systems through a Longreach-managed co-investment fund to reflect DXC’s continued commitment to a Longreach-led Japan Systems.

About DXC

DXC Technology (NYSE: DXC) helps global companies run their mission critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. With decades of driving innovation, the world’s largest companies trust DXC to provide services across the Enterprise Technology Stack to deliver new levels of performance, competitiveness and customer experiences. Learn more about the DXC story and our focus on people, customers and operational execution at dxc.technology.

Cautionary Note Regarding Forward-looking Statements

All statements in this press release that do not directly and exclusively relate to historical facts constitute “forward-looking statements.” These statements represent current expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved. Such statements are subject to numerous assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the recent outbreak of the novel coronavirus (“COVID-19”) pandemic and the impact of varying private and governmental responses that affect our customers, employees, vendors and the economies and communities where they operate. For a written description of these factors, see the section titled “Risk Factors” in DXC's Annual Report on Form 10-K for the fiscal year ended March 31, 2020, and any updating information in subsequent SEC filings including DXC's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020. No assurance can be given that any goal or plan set forth in any forward-looking statement can or will be achieved, and readers are cautioned not to place undue reliance on such statements which speak only as of the date they are made. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events except as required by law.