United States technology giant CSC has made a bid to acquire UXC in a deal which reportedly could be worth more than $420 million and would create one of the regions largest IT services companies.

The two companies are now in negotiations after CSC proposed the deal to UXC, which is the largest ASX listed services and integration company, with revenue of $686 million and nearly 3000 staff.

CSC meanwhile has 70,000 employees and revenue of $11.7 billion for the 12 months to July 03, 2015.

Cris Nicolli, UXC managing director, says: “The proposal from CSC recognises the potential of UXC and is a testament to the strong business we have built.

“The board of UXC is supportive of this move,” Nicolli adds.

A combined CSC-UXC would be among the region's largest IT services companies, based on revenues, and would provide an expanded set of services for customers and a broader industry reach, UXC says.

“All of us at UXC are tremendously proud of what we've achieved to date, and the proposal from CSC represents a potential next stage in the evolution of our company,” Nicolli says.

UXC says it believes it is in the interests of its shareholders to engage further with CSC with a view to finalising an implementation agreement to implement the proposed transaction.

CSC has been granted a five week period of exclusive due diligence.

The deal would see UXC shareholders receiving cash payments of $1.28 per share, comprising $1.26 cash per share and payment of a franked dividend of 2c per share for the half year ending 31 December 2015.

The proposal is subject to several conditions, including completion of due diligence, agreeing a scheme of arrangement, board approvals and regulatory conditions.

The transaction, if it goes ahead, is expected to be concluded by February 2016.