DXC Technology, an IT services vendor based in Ashburn, Virginia, is currently in discussions with buyout firms Apollo Global and Kyndryl Holdings regarding a potential sale. According to sources familiar with the matter, Apollo and Kyndryl have been exploring an acquisition offer for DXC in the range of $22 to $25 per share. This news caused a surge in DXC’s stock price, closing Monday’s trading session up 11% at $18.45, with a market value of $3.3 billion.
DXC has faced declining revenue over the past year due to high interest rates and concerns about an economic slowdown leading to reduced spending by corporate customers. The company’s shares have dropped more than 30% in the last year as a result. To address this downturn, DXC has implemented cost-cutting measures and restructuring initiatives. However, it is unclear whether the company will choose to sell or remain independent under the leadership of CEO Raul Fernandez, who was appointed in February.
DXC offers analytics, engineering, cyber security, cloud infrastructure, and outsourcing services through its business offerings. While this may seem like a diverse set of services, the company has faced challenges such as reduced demand from corporate customers and increased competition from other IT services providers. It remains to be seen whether Apollo and Kyndryl can provide a solution to these challenges that will make DXC an attractive target for acquisition or if it will remain independent under its current leadership team.