Computer Sciences Corporation (NYSE:CSC), a global leader in next-generation IT services and solutions, today announced it has closed the acquisition of Fruition Partners, the leading provider of technology-enabled solutions for the service-management sector and the largest ServiceNow-exclusive service-management consulting firm. The acquisition bolsters CSC’s ability to offer enterprise and emerging clients an expanded range of cloud-based service-management solutions to improve their business results through organizational efficiency and lower operating costs.
Fruition Partners is now a wholly owned subsidiary of CSC and will do business as Fruition Partners, a CSC company. Financial terms of the transaction were not disclosed. ServiceNow is a CSC strategic alliance partner.
Combining Fruition Partners with the scale, reach, industry penetration and extensive skill portfolio of CSC creates an extraordinary leadership position in the fast-growing enterprise software-as-a-service (SaaS) market. It also addresses growing client demand for better, faster and more efficient service-management capabilities across process, applications and infrastructure – both traditional and cloud-enabled.
“We welcome the Fruition Partners team to CSC,” said Jim Smith, executive vice president and general manager, Global Business Services, CSC. “Together, we now can provide enterprise clients with end-to-end support for ServiceNow-related software and solutions, as well as a broader range of professional service-management offerings. CSC is now at the forefront of helping modern enterprise optimize technology to manage work, giving our clients access to an expanded range of XaaS capabilities.”
Marc Talluto, co-founder and chief executive officer, Fruition Partners, said “the combined business marries CSC’s global strength with Fruition Partners’ service-management expertise to bring existing and new clients even greater results as they continue to be challenged in the constantly evolving digital world. We look forward to cross-pollinating service offerings and best practices, including pre-packaged accelerators and integrations, an exclusive shared ServiceNow knowledge base, and the world’s only fully managed ServiceNow application service offering. Fruition Partners is excited to be part of the CSC family.”
Talluto will lead CSC’s global ServiceNow organization, reporting to Ravi Puri, vice president and general manager, Digital Applications organization. Fruition Partners employees will begin transitioning to CSC immediately for completion by year-end.
With headquarters in Chicago, Fruition Partners has operations in the United States, Canada, the United Kingdom and South America. For more information on Fruition Partners, a CSC company, go to: www.fruitionpartners.com.
“Adding Fruition Partners to CSC is a sound strategic decision and underscores CSC’s commitment to drive service management across the enterprise, said David Schneider, chief revenue officer, ServiceNow. “We believe this combined business will accelerate the cloud-based service transformation opportunities for CSC’s clients.” (Original Source)
Shares of Computer Sciences Corp. closed last Friday at $60.89. CSC has a 1-year high of $73.29 and a 1-year low of $54.23. The stock’s 50-day moving average is $63.24 and its 200-day moving average is $65.37.
On the ratings front, Computer Sciences has been the subject of a number of recent research reports. In a report issued on September 1, BMO analyst Keith Bachman reiterated a Hold rating on CSC, with a price target of $72, which implies an upside of 18.2% from current levels. Separately, on the same day, Deutsche Bank’s Bryan Keane reiterated a Hold rating on the stock and has a price target of $65.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Keith Bachman and Bryan Keane have a total average return of 20.0% and 12.1% respectively. Bachman has a success rate of 63.8% and is ranked #57 out of 3765 analysts, while Keane has a success rate of 71.0% and is ranked #295.
The street is mostly Neutral on CSC stock. Out of 5 analysts who cover the stock, 3 suggest a Hold rating and 2 recommend to Buy the stock. The 12-month average price target assigned to the stock is $70.50, which implies an upside of 15.8% from current levels.
Computer Sciences Corp provides information technology (IT) and professional services and solutions. The Company’s reportable segments are Global Business Services (GBS), Global Infrastructure Services (GIS), and North American Public Sector (NPS).