DXC Spin-off To Be Renamed Gainwell Technologies
Veritas Capital, which plans to close its $5 billion acquisition of Technology‘s state and local health and human services business on Oct. 1, unveiled the new name for the business and named DXC’s current chief financial officer as its new CEO.
The planned government and human resources spin-off from DXC Technology will be named Gainwell Technologies.
Veritas Capital, the private equity company which in March said it will acquire DXC Technology‘s state and local health and human services business for $5 billion in cash, on Wednesday said the business will be named Gainwell Technology when the acquisition closes on Oct. 1.
New York-based Veritas Capital also said Paul Saleh (pictured), DXC Technology’s executive vice president and chief financial officer, will take the reins at Gainwell Technology as its CEO after the acquisition closes.
[Related: 5 Keys To Understanding DXC‘s Planned Divestiture Of Three Businesses]
The move to spin off DXC Technology’s state and local health and human services businesses stems from a decision late last year by DXC Technology to divest itself of three of its businesses as a way to bolster its finances with a focus on its core services business.
DXC was formed in April 2017 from a merger of CSC and Hewlett Packard Enterprise’s enterprise services business.
The Veritas Capital purchase is not the only deal announced by DXC to divest its businesses. DXC in July said it plans to sell its healthcare provider software business to Italy-based Dedalus Group in a $525 million cash deal.
According to Veritas Capital, the name “Gainwell” stems from a commitment to improving the health outcomes in the U.S. via innovative technology solutions and support.
A DXC spokesperson replied to a CRN emailed request for further information on the Gainwell Technology news by saying the company is not providing further comment until the transaction with Veritas Technology closes.
However, Ramzi Musallam, CEO and managing partner at Veritas Capital, said in a prepared statement that Veritas look forward to supporting Gainwell Technologies as it partners with clients to navigate complex challenges, and welcomes Saleh and his team to the Veritas family.
“The choice of Gainwell reflects the true vision of the new company. Its trusted expertise and comprehensive technology capabilities will further benefit from the entrepreneurial spirit of a standalone company as it leads the way in developing, implementing and delivering innovative and vital technology for its clients and the communities they serve,” Musallam said.