Kyndryl, Apollo Global Jointly Bidding For DXC: Report
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Reuters late Monday, citing unnamed sources, said that solution provider Kyndryl Holdings and investment company Apollo Global were teaming up to make a bid for solution provider DXC Technology that could value DXC at up to $4.5 billion.
Reuters late Monday reported that Kyndryl and Apollo have considered a joint offer to acquire DXC for between $22 and $25 per share, citing unnamed people familiar with the offer.
Reuters, citing those unnamed sources, also reported that DXC is soliciting bids for a possible sale of its insurance software business, which could bring the company $2 billion.
[Related: Kyndryl CEO: Customers Know ‘Their AI Is Only Going To Be As Good As Their Data’]
After the news of the potential acquisition, DXC’s share price Monday closed at $18.45 per share, up $1.90, or 11.5 percent, for the day, for a market capitalization of $3.30 billion. In after-hours trading, DXC shares rose to as high as $19.40 per share but Tuesday opened at $18.88 per share.
Neither Kyndryl nor Apollo responded to CRN requests for more information. A DXC spokesperson replied to a CRN request for more information via email saying that the company does not comment on market rumor and speculation.
New York-based Kyndryl is No. 9 on CRN’s 2024 Solution Provider 500. Ashburn, Va.-based DXC is No. 11.
DXC, which was founded in 2017 from a merger of CSC and HPE Enterprise Services, had a rough fiscal year 2024, which ended March 31. For the year, DXC reported total revenue of $13.67 billion, down 5.3 percent over fiscal 2023. The company also reported GAAP net income of $86 million, significantly better than the prior year’s net loss of $566 million.
However, DXC during its fiscal year 2024 report forecast that fiscal 2025 revenue and profit were expected to be below analyst estimates.
DXC share prices have fallen about one-third in the last 12 months, Reuters reported.
DXC early this year also appointed Raul Fernandez as its new CEO and president.
Fernandez had been serving as interim president and CEO of DXC since December 2023 when former DXC President and CEO Mike Salvino vacated his role.
Kyndryl, the world’s largest IT infrastructure services provider, was spun out of IBM in early 2022.
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Reuters late Monday, citing unnamed sources, said that solution provider Kyndryl Holdings and investment company Apollo Global were teaming up to make a bid for solution provider DXC Technology that could value DXC at up to $4.5 billion. Global IT services provider Kyndryl Holdings and private investment firm Apollo Global reportedly may be preparing a…
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