Buyout firm Apollo Global and Kyndryl Holdings, the IT services provider spun out of IBM, are in discussions about a joint bid for DXC Technology, for $22 and $25 per share.
Following the news, DXC shares surged, closing up 11 percent at $18.45, giving the company a market value of $3.3 billion, Reuters news report said.
DXC Technology, an IT services vendor, is also exploring the sale of its insurance software business for over $2 billion. However, the company may choose to remain independent under the leadership of Raul Fernandez, who became CEO in February.
DXC’s services include analytics, engineering, cybersecurity, cloud infrastructure, and outsourcing, which support corporate operations. The company has faced declining revenues over the past year as high interest rates and economic slowdown fears have led corporate customers to reduce spending.
DXC has implemented cost-cutting and restructuring measures. The Ashburn, Virginia-based company previously engaged in sale discussions last year but ceased negotiations when a private equity suitor failed to secure the necessary financing.
Kyndryl, which focuses on infrastructure IT services, has a market value of $6 billion. Apollo Global, managing $671 billion in assets, is one of the largest investors in private equity and corporate credit assets globally.
