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$CSC, provider of technology services, has signed a definitive agreement to administer nearly 7MM policies for $MET, consisting of select retail life and annuity closed block business. As part of the deal, CSC will offer employment to more than 1,000 MetLife employees in the US and India. The employee transition will be completed by 2016 end.
$HPE, which spun off its Enterprise Services business and merged it with $CSC, said that it sold H3C business in China and MphasiS. The company also spin off its Enterprise Services business and merged it with $CSC and spin off its software business and merged it with Micro Focus. These transactions are valued at over $20Bil.
IT and professional services provider $CSC said its businesses, UXC Keystone, Fruition Partners, and Aspediens will combine to form a leading global ServiceNow practice. With operations across North America, UK, Europe, Australia and New Zealand, the practice will operate under the Fruition Partners brand.
In 1Q17, $CSC had restructuring costs of $57MM on a pre-tax basis, or $0.32 per diluted share, relating mainly to the Xchanging acquisition. Also company had transaction and integration-related costs of $70MM pre-tax, or $0.36 per diluted share, relating to recent acquisitions and $CSC's announced merger with Enterprise Services segment of $HPE.
$CSC's 1Q17 commercial operating margin was 8.3%, up 80 BPs YoverY. Total bookings in the quarter were $1.6Bil, representing a book-to-bill ratio of 0.8x. GBS reported bookings of $740MM and GIS bookings were $870MM in the quarter. Commercial CapEx was $148MM or 7.7% of revenue, down 70 BPs YoverY. Cash at end 1Q17 was $1Bil.
For FY17, $CSC expects constant currency revenue to be up in low-double-digits. Company expects GBS revenue to be up and GIS revenue to be down in low-single-digits, both on constant currency basis. Free cash flow is expected to be 100%-plus of net income and tax rate is expected to be about 20%.
Information technology services provider $CSC's 1Q17 Global Business Services (GBS) segment revenue grew about 16% YoverY in constant currency. Global Infrastructure Services (GIS) revenue grew 1.7% YoverY in constant currency. Revenue from next-generation offerings was up about 110% YoverY in constant currency.