DXC Technology To Acquire Logicalis SMC To Boost Global ServiceNow Practice

DXC Technology's global ServiceNow business is getting a shot in the arm with the planned acquisition of Netherlands-based Logicalis SMC.

Logicalis SMC, a service management consultancy specialist that was the first European company to become a ServiceNow Master Solutions partner, will join DXC's ServiceNow practice within Fruition Partners, a DXC Technology company and a leading global ServiceNow platform.

"The addition of Logicalis SMC to Fruition Partners solidifies DXC’s position as a nimble, global ServiceNow partner," said Troy Richardson, DXC senior vice president and general manager of enterprise and cloud applications, in a statement. "Together, Fruition Partners with Logicalis SMC provides enterprise clients with end-to-end support for ServiceNow-related software and solutions, as well as a broader range of professional service management offerings."

[Related: DXC Technology Buys 740-Person Microsoft Dynamics 365 Powerhouse Tribridge]

Terms of the deal were not disclosed.

Tysons, Va.-based DXC Technology, ranked No. 11 on CRN's 2017 Solution Provider 500 list, was formed in April 2017 from the merger of $7.1 billion CSC and the Enterprise Solutions business of Hewlett Packard Enterprise. DXC Technology has 170,000 employees across more than 70 countries.

DXC Technology has said its goal is to expand its digital offerings by making targeted, tuck-in acquisitions. In July, DXC Technology acquired Microsoft Dynamics 365 solution provider Tribridge and its managed cloud business, Concerto Cloud Services.

The acquisition of Logicalis SMC aims to strengthen DXC Technology's scale, reach and skills portfolio in the fast-growing enterprise Software-as-a-Service market.

Logicalis SMC, a subsidiary of solution provider Logicalis Group, was founded in 1998 and has 184 employees across the Netherlands and Europe. The solution provider also sells proprietary software built on the ServiceNow platform.

Logicalis Group CEO Mark Rogers said selling off its service management consultancy operation is a "win-win" for all parties involved.

"SMC can continue their growth in the service management consultancy and training arena; DXC will add another strong European arm to their operation; and Logicalis will release funds to focus on our core business, as we evolve as a leading digital transformation enabler, and on our M&A ambitions," said Rogers in a statement.

Datatec, Logical Group's parent company, recently sold Westcon Americas to Synnex.

Datatec CEO Jens Montanana said in a statement that selling Logicalis SMC "represented outstanding value for us to divest a noncore business while allowing Logicalis' excellent business relationship with SMC to continue under new ownership."

DXC Technology s striving to achieve $1 billion of cost savings in its first year, with 70 percent of that coming from workforce optimization measures and finding supply chain efficiencies. In August, DCX shut down 58 facilities and eliminated 40 percent of the company's vice presidents and directors.