Apollo Global Management (APO.US) and Kyndryl (KD.US), an information technology service provider spun off from IBM (IBM.US), are in talks to jointly bid for DXC Technology (DXC.US), according to people familiar with the matter on Monday.

IT service provider DXC's business includes helping companies manage operational analysis and engineering, as well as cybersecurity, cloud infrastructure, and outsourcing.

Apollo Global Management, with a scale of $671 billion, is one of the largest private equity and enterprise credit asset investors in the world. Kyndryl, which specializes in infrastructure IT services, has a market cap of $6 billion.

One insider said that Apollo and Kyndryl had discussed a bid for DXC between $22 and $25 per share. DXC's stock price rose sharply on the news, closing up 11% on Monday at $18.45 per share, with a market value of $3.3 billion.

DXC is separately soliciting bids and plans to sell its insurance software business for over $2 billion, and may choose to continue as an independent company under the leadership of CEO Raul Fernandez, who was appointed in February of this year.

Insiders requested anonymity as the matter is confidential. DXC and Apollo declined to comment. Kyndryl did not immediately respond to requests for comment.

Last year, the company's revenue was hit hard by high interest rates and customers cutting back spending due to concerns about economic slowdown. In the past 12 months, the company's stock price has fallen by more than one-third.

In response to the economic slowdown, DXC has taken a series of cost-cutting and restructuring measures. The company said it had held talks on a sale last year and ended discussions after a private equity acquirer failed to raise the necessary funds.