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

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.