Sun. Jun 16th, 2024
Exclusive: Apollo and Kyndryl make joint bid for DXC Technology, insiders report | The Mighty 790 KFGO

According to sources familiar with the matter, private equity firm Apollo Global and IT services provider Kyndryl Holdings are considering a joint bid for 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. 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.

DXC’s CEO Raul Fernandez was appointed in February and may choose to remain an independent company under his leadership. 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. In response, DXC has implemented cost-cutting measures and restructuring initiatives.

Kyndryl specializes in infrastructure IT services and has a market value of $6 billion. Apollo Global Management is a major player in private equity with $671 billion of assets under management. It is unclear if any other potential suitors are involved in the discussions with DXC Technology at this time.

In 2019, discussions to sell the company were held but ended after a private equity suitor was unable to secure necessary financing.

Overall, it remains uncertain whether Apollo Global Management will make an offer for DXC Technology or if negotiations will continue with other potential suitors.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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