Apollo Global and Kyndryl are in discussions about a potential joint bid for the acquisition of DXC Technology, reports Reuters, citing sources.  

The proposed bid could range between $22 and $25 per share.  

As of 10 June 2024, DXC’s market capitalisation stood at $3.3bn, with shares priced at $18.45. 

DXC, an IT services vendor, is concurrently exploring the sale of its insurance software unit, which could fetch upwards of $2bn.  

The company might also choose to remain independent under CEO Raul Fernandez, who took the helm in February, the sources said.   

Apollo and DXC declined to comment, and requests for comments from Kyndryl did not elicit a response, the publication said.  

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DXC offers a suite of services including analytics, engineering, cybersecurity, cloud infrastructure, and outsourcing.  

However, the company has seen a downturn in revenue over the past year due to economic headwinds, leading to a drop in its share value. 

In response to the challenging market conditions, DXC has implemented cost-cutting measures and restructuring.  

The Virginia-based company acknowledged that it had previously engaged in sale discussions in 2023, which were discontinued when a potential private equity buyer could not secure the necessary funds. 

Kyndryl, the IT services provider spun out of IBM, boasts a market value of $6bn.  

Apollo, a key player in private equity and corporate credit, manages assets worth $671bn.  

Earlier in 2024, automotive company Stellantis announced a collaboration with Kyndryl to enhance its enterprise IT infrastructure across various regions.