Computer Sciences (CSC) Completes Fixnetix Acquisition

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IT services and solutions provider, Computer Sciences Corp. CSC recently completed the acquisition of Fixnetix, a London-based managed service provider in capital markets. The two companies had entered into a merger agreement last month. However, the financial terms of the deal were not disclosed.

Fixnetix specializes in delivering trading systems operations, market information systems and related technology infrastructure worldwide. The company helps to facilitate low latency trading for investment banks and hedge funds, thus addressing front-office challenges and enhancing operational efficiencies in the present dynamic capital market environment.

Per Computer Sciences, "Fixnetix will be a key component to the implementation of our infrastructure strategy and will advance CSC as a leader in providing managed services to capital markets firms throughout the world,"

Therefore, the acquisition will help Computer Sciences to fill a key gap in its portfolio. The company can now offer a wider range of managed services solutions to capital markets firms and help clients to improve business results through organizational efficiency and lower operating costs.

Economic chaos and regulatory and technological advances are bringing rapid change to the capital markets sector, making this an especially challenging time for capital markets firms around the world. Therefore, these firms are continuously looking for a trading environment that is more reliable, secure and minimizes trading risk. We believe that the move will help Computer Sciences to fulfil its mission of making IT systems more agile and productive, and save costs considerably. Also, the company will be able to address growing clients' demand by providing a range of as-a-service front office capabilities.

Apart from this, Computer Sciences recently completed the acquisition of Chicago-based IT services and consulting firm, Fruition Partners. Fruition Partners specializes in delivering technology solutions for the service-management sector. The company helps clients to integrate cloud-based service management solutions and realize cost and performance benefits quickly.

Furthermore, it is to be noted that CSC is in the process of splitting into two separate publicly traded companies. According to the company, one will "serve commercial and government clients globally", while the other will "serve public sector clients in the United States." The new businesses will be named CSC Global Commercial and CSC US Public Sector, respectively.

However, the market is becoming competitive with companies like CACI International Inc. CACI and Accenture plc ACN making their presence felt. In such a scenario, we believe that these acquisition strategies will be beneficial for Computer Sciences and will give it a competitive advantage.

Currently, Computer Sciences has a Zacks Rank #3 (Hold).

A better ranked stock worth considering in the technology sector is Amazon.com Inc. AMZN , sporting a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Symbols: ACN , AMZN , CACI

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