Luxoft, the digital strategy and software engineering arm of DXC Technology Company DXC, recently announced the completion of the acquisition of mobility systems developer, CMORE Automotive. The financial terms of the deal were not disclosed.
CMORE Automotive provides engineering and data solutions for the development and validation of AI-based AD functions. The acquisition will help DXC Technology enhance its capabilities in the Autonomous Drive/Advanced Driver Assistance Systems (AD/ADAS) space.
Dmitry Loschinin, executive vice president, DXC Technology, said, "With CMORE Automotive, Luxoft will extend its spectrum of AD/ADAS initiatives, from enabling customers to amplify their fusion, perception and driving function development, testing and validation capacities to delivering transformative AD/ADAS solutions at scale.”
DXC Technology Company. Price and Consensus
DXC Technology Company. price-consensus-chart | DXC Technology Company. Quote
Acquisitions Enrich Portfolio
DXC Technology is also focusing on acquisitions to expedite growth. This is helping it gain access to newer markets and technologies. We believe that the acquisitions will further strengthen DXC Technology’s position as one of the leading IT services providers in the world. Moreover, acquisitions have helped the company boost revenues amid intensifying competition in the cloud computing and cybersecurity market.
It acquired digital innovator, Luxoft, last year to establish presence in the autonomous vehicle market. Moreover, the buyout of customer experience solutions provider, Bluleader, in November last year was part of DXC Technology’s focus on growth and investment in SAP-based customer experience solutions.
DXC’s Automotive Push to Boost Growth
The company is trying to take advantage of the growing market for autonomous vehicles. Luxoft already has partners like Daimler, whose automotive platforms and IP include autonomous driving platforms, human machine interface, toolchain, digital cockpit, user experience, and telematics and IoT for connected vehicles.
Per MarketsandMarkets, the advanced driver-assistance systems (ADAS) market is projected to reach $134.9 billion by 2027, at a CAGR of 20.7%, from 2019.
DXC Technology’s sound technical know-how in autonomous vehicle systems positions it to benefit immensely.
Notably, in January, Luxoft announced a partnership with LG Electronics to accelerate the development of large-scale series production systems, including digital cockpit systems, rear seat entertainment, cabin and center stack display, in-vehicle infotainment and others.
Moreover, the partnership with BMW pushes DXC Technology further into the market for self-driving cars and is expected to boost its Digital Solutions business.
Zacks Rank and Key Picks
DXC Technology currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are LogMein, Inc. LOGM, ManTech International Corporation MANT and Zoom Video Communications, Inc. ZM, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for LogMein, ManTech and Zoom is currently pegged at 5%, 7.36% and 26.56%, respectively.
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