Apollo and Kyndryl Eye Joint Bid for DXC Technology, Sending Shares Soaring

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Apollo and Kyndryl Eye Joint Bid for DXC Technology, Sending Shares Soaring

Apollo Global Management Inc. (APO) and Kyndryl Holdings Inc. (KD), a spinoff from IBM, are reportedly considering a joint bid for DXC Technology Co. (DXC).

The potential bid, which could range between $22 and $25 per share, sent DXC's shares soaring by 11% on Monday. The company, which also operates as an IT services provider, is concurrently seeking bids for the sale of its insurance software business, valued at over $2 billion.

DXC's revenue has been impacted over the past year due to factors such as high interest rates and concerns about an economic slowdown. The company has responded to this downturn through a series of cost-cutting measures and restructuring initiatives.

The potential joint bid by Apollo and Kyndryl comes at a time when the latter has been receiving positive attention from Wall Street. Kyndryl Holdings Inc. has an average brokerage recommendation of 1.40, indicating a strong buy sentiment among analysts. This, coupled with the company's market value of $6 billion, positions Kyndryl as a significant player in the IT services sector.

On the other hand, Apollo Global Management Inc. is a major player in private equity and corporate credit assets, with assets under management totaling $671 billion. The potential collaboration between Apollo and Kyndryl for the acquisition of DXC Technology Co. could have significant implications for the IT services industry.