DXC Technology is in advanced discussions to sell its insurance software and services division to private investment firm Eldridge Industries for approximately $2.4 billion, according to people familiar with the matter. The potential transaction could reshape the insurance technology landscape as DXC seeks to streamline its business following years of declining revenue.

Eldridge is considering combining the acquired operations with Zinnia, its insurance technology platform that supplies software and digital infrastructure to life insurance and annuity providers, the sources said.

An agreement could emerge within the coming weeks, although negotiations remain ongoing and there is no guarantee the parties will finalize a deal. The sources requested anonymity because the discussions are confidential.

DXC Technology, Eldridge Industries and Zinnia did not immediately respond to requests for comment.

DXC Considers Major Divestiture Amid Revenue Challenges

The proposed sale would represent a significant portfolio reduction for DXC Technology, an IT services provider working to simplify its operations after several years of declining revenue. Divesting the insurance division would allow the company to step away from a business that delivers technology and outsourcing services to insurers worldwide.

The move could mark another important step in DXC's efforts to sharpen its business focus. By selling the division, the company would relinquish a substantial part of its insurance technology operations while seeking to streamline its broader portfolio.

Insurance Software Serves Multiple Markets

DXC's insurance division provides policy administration systems, software solutions and business process services to insurers across several markets, including life insurance, wealth management, property and casualty coverage.

These services support essential insurance operations, making the proposed sale more than a simple transfer of software assets. The business provides technology and operational capabilities to insurers globally, giving its potential buyer access to an established range of insurance-focused services.

Eldridge Eyes Combination With Zinnia

For Eldridge Industries, acquiring DXC's insurance operations could offer an opportunity to expand its presence in insurance technology by bringing complementary businesses under one roof.

Zinnia currently focuses on life insurance and annuity technology, providing the software and digital infrastructure that insurers need to manage their operations. Combining that platform with DXC's insurance software and business-process services could create a larger provider serving a broader range of insurance technology needs.

A Broader Insurance Technology Platform

If completed, the transaction would unite Zinnia's life and annuity technology capabilities with DXC's established insurance software, administration and servicing operations.

The resulting business could operate at a greater scale, offering insurers an integrated range of software, administrative support and servicing technology. For Eldridge, the combination could strengthen its position in a sector where digital infrastructure and efficient policy administration remain central to insurance operations.

However, the proposed $2.4 billion transaction remains under discussion. Until the parties reach a definitive agreement, the future ownership of DXC's insurance software and services division remains uncertain.