October 11, 2017 / 10:15 PM / a year ago

BRIEF-DXC Technology to create independent U.S. public sector business

Oct 11 (Reuters) - DXC Technology Co

* DXC Technology to combine its U.S. public sector business with Vencore Holding Corporation and Keypoint Government Solutions to create an independent, publicly traded company serving U.S. government clients

* Veritas Capital will remain an investor in new company​

* Mac Curtis, president and CEO of Vencore, will become chief executive officer of new company​

* ‍USPS will distribute $1.05 billion in cash consideration (or assumed debt) to DXC​

* DXC will use proceeds from transaction to reduce debt, repurchase shares, and for other general corporate purposes​

* Veritas Capital's Ramzi Musallam will join board of new company, with remaining board members named at a later date​

* Funds managed by Veritas Capital and its affiliates will own approximately 14 percent of combined company's common shares upon consummation of transactions​

* Co to get shares of USPS via a spin-off, to own about 86 percent of combined co's common shares upon consummation of transactions​

* Vencore and Keypoint have each received necessary shareholder approvals to complete transactions​

* Funds managed by Veritas Capital and its affiliates will receive $400 million of cash merger consideration​ Source text for Eikon: Further company coverage:

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