DXC Technology, a leading IT services provider, is reportedly in discussions with Apollo Global and Kyndryl Holdings, the IT services provider spun out of IBM, about a potential joint bid. The two parties have explored an acquisition offer for DXC ranging between $22 and $25 per share. Sources familiar with the matter say that DXC is also considering selling its insurance software business for over $2 billion. However, it remains uncertain whether the company will operate independently or under new leadership.
The news of these discussions caused a significant increase in trading of DXC shares, which reached $18.45 by the end of the day and resulted in a market value of $3.3 billion. DXC Technology offers a range of business solutions such as analytics, engineering, cybersecurity, and cloud infrastructure services. However, the company has experienced a decline in revenue over the past year due to economic uncertainty impacting corporate spending. In response to this downturn, DXC has implemented cost-saving measures and restructuring efforts.
Kyndryl Holdings specializes in infrastructure IT services and has a market value of $6 billion, while Apollo Global manages assets totaling $671 billion and is a prominent player in private equity and corporate credit investments. If this potential bid were to go through, it would represent significant moves within the IT services sector. All three companies declined to provide comments on the matter.
