DXC Technology (DXC) stock is trading higher Monday following reports that the company is in advanced talks to sell its insurance software business to private investment firm Eldridge Industries for $2.4 billion.

Reuters reported Monday, citing people familiar with the matter, that Eldridge is considering combining DXC's insurance software business with Zinnia, its existing insurance technology platform.

Insurance Business Highlights

DXC's Insurance Software & Services segment serves Life and Wealth, Property & Casualty and Reinsurance providers, helping them optimize, run and digitally transform their operations.

The business offers AI-powered solutions to help insurers modernize their technology landscape and improve customer experiences.

The segment generated $1.28 billion in revenue during fiscal 2026, representing a 5.4% increase year over year and a 3.6% organic growth. The segment contributed 10% to DXC's revenue in 2026.

Segment profit declined 20.4% to $129 million, with a corresponding margin of 10.1%.

Book-to-bill ratio reached 0.76 times, compared to 0.77 times during fiscal 2025.

DXC Technology held cash and cash equivalents of $1.96 billion as of June 30, 2026.

The company, in early October, expanded its Assure Platform with new AI-enabled capabilities, aimed at streamlining underwriting, claims processing and insurance operations.

The transaction would mark a significant divestiture for DXC as the information technology services provider seeks to streamline its portfolio after several years of declining revenue. Revenue declined 1.8% to $12.64 billion during fiscal 2026.

The $2.4 billion deal implies an EV-to-sales multiple of nearly 1.9 times, based on insurance segment revenues of $1.28 billion.

Eldridge Industries Expands Its Zinnia Platform

Zinnia, an insurance technology platform, serves 100+ insurance carriers.

The addition of DXC's insurance business would bring a large customer base of more than 1,000 insurance companies, including 21 of the world's top 25 insurers and a robust pipeline of around $3 billion.

DXC's insurance platform processes over 1 billion insurance policies across 70 countries.

DXC Price Action

DXC Price Action: DXC Technology shares were up 8.55% at $14.78 at the time of publication on Monday, according to market data.