By Greg Roumeliotis and Milana Vinn
(Reuters) -Acquisition firm Apollo Global and Kyndryl Holdings, the information technology services provider that was spun off from IBM (NYSE:), are in talks about a joint bid for DXC technology (NYSE:), people familiar with the matter said on Monday.
Apollo and Kyndryl have discussed a takeover offer for DXC of between $22 and $25 per share, one of the sources said. DXC shares jumped on the news and ended trading in New York on Monday up 11% at $18.45, giving the company a market value of $3.3 billion.
DXC, which is also an IT services provider, is seeking separate bids to sell its insurance software business for more than $2 billion and may choose to remain an independent company under Raúl Fernández, who was named director. executive in February, the sources added.
The sources requested anonymity because the matter is confidential. DXC and Apollo declined to comment. Kyndryl did not immediately respond to a request for comment.
DXC's commercial offerings include analytics and engineering that help companies manage their operations, as well as cybersecurity, cloud infrastructure and outsourcing.
The company's revenue has taken a hit over the past year, as high interest rates and fears about an economic slowdown have led many of its corporate clients to curb spending. Its shares have lost more than a third of their value in the past 12 months.
DXC has responded to the slowdown through a series of cost cuts and restructuring initiatives. The Ashburn, Virginia-based company has said it last held talks to sell itself last year and ended those talks after a private equity suitor failed to secure the necessary financing.
Kyndryl, which specializes in infrastructure IT services, has a market value of $6 billion. Apollo, with $671 billion in assets under management, is one of the world's largest investors in private equity and corporate credit assets.
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