Buyout firm Apollo Global and Kyndryl Holdings, the information technology services provider that was spun out of IBM, are in talks about a joint bid for DXC Technology, people familiar with the matter said.

DXC, which is also an IT services vendor, is separately soliciting bids to sell its insurance software business for more than US$2 billion and may opt to remain an independent company under Raul Fernandez, who was appointed chief executive in February, the sources added.

The sources requested anonymity because the matter is confidential. DXC and Apollo declined to comment. Kyndryl did not immediately respond to a request for comment.

DXC’s business offerings include analytics and engineering that help companies manage their operations, as well as cyber security, cloud infrastructure and outsourcing.

The company’s revenue has taken a hit over the last year, as high interest rates and fears about an economic slowdown have prompted many of its corporate customers to curb spending. Its shares lost more than a third of their value in the last 12 months.

DXC has responded to the slowdown through a series of cost cuts and restructuring initiatives. The Ashburn, Virginia-based company has said it last held talks to sell itself last year, and that it ended these discussions after a private equity suitor failed to raise the necessary financing.

Kyndryl, which specialises in infrastructure IT services, has a market value of US$6 billion. Apollo, with US$671 billion of assets under management, is one of the world’s biggest investors in private equity and corporate credit assets.