According to sources familiar with the matter, private equity firms Apollo Global and Kyndryl Holdings are in discussions about a joint bid for IT services provider DXC Technology. The acquisition offer being considered is between $22 and $25 per share. DXC’s shares rose on the news, closing trading in New York up 11% at $18.45, giving the company a market value of $3.3 billion.
DXC Technology is currently seeking bids to sell its insurance software business for over $2 billion and may also choose to remain an independent company under the leadership of CEO Raul Fernandez, who was appointed in February. The sources requesting anonymity because the matter is confidential, and both DXC and Apollo declined to comment. Kyndryl did not immediately respond to a request for comment.
Kyndryl specializes in infrastructure IT services and has a market value of $6 billion, while Apollo, with $671 billion of assets under management, is a major player in private equity and corporate credit investments. DXC reported that discussions to sell the company were held last year but ended after a private equity suitor was unable to secure necessary financing.
DXC’s business offerings include analytics, engineering, cyber security, cloud infrastructure, and outsourcing services. The company has faced revenue challenges in the past year due to high interest rates and concerns about an economic slowdown, causing some corporate customers to reduce spending. DXC has implemented cost-cutting measures and restructuring initiatives in response to these challenges.
