Shares of DXC, Tysons, Va., at last check were up nearly 10% at $29.02.
Atos confirmed the reports in statement that it had approached DXC "concerning a potential friendly transaction between the two groups."
Reuters, citing sources with knowledge of the matter, reported Thursday that Atos made a formal approach to DXC about a potential takeover valuing the company at more than $10 billion including debt.
DXC provides analytics, cloud, security and business process services to clients in the insurance, automotive, aerospace and defense industries.
DXC confirmed in a statement that it received "an unsolicited, preliminary and non-binding proposal from Atos SE Wednesday night to acquire all DXC Technology shares" and that its board "will be evaluating the proposal."
"Prior to receiving this proposal Wednesday night, DXC Technology had no knowledge of any such interest from Atos," the statement continued.
The French IT consultancy is scouting for acquisitions in the U.S. to expand in areas including cybersecurity, Bloomberg reported.
Deliberations are ongoing and may not lead to any transaction, Bloomberg said, citing people with knowledge of the matter said.
The company said it "does not comment on rumor or speculation in the market."
SecureWorks offers IT security software and threat detection analytics as well as strategic consulting services.
Atos is seeking greater scale to compete with SAP SE (SAP) - Get SAP SE Sponsored ADR Report and Accenture at a time when clients are revamping their technology infrastructure to handle more remote work.
Atos has concentrated on acquisitions, with recent deals including Dutch cybersecurity firm Motiv ICT Security and U.S. software firm Eagle Creek.
The company’s largest acquisition to date was its $3.4 billion of Syntel Inc. in 2018, according to data compiled by Bloomberg.
Atos is also investing in cloud computing. Last year it launched Atos OneCloud, an initiative to move clients to the cloud, and said it would invest 2 billion euros ($2.46 billion) over the next five years.
DXC, which has 138,000 employees, has a market capitalization of about $6.7 billion as of Wednesday’s close, while SecureWorks is valued at about $1.1 billion.
The company sold a business focused on state and local medical services to buyout firm Veritas Capital for $5 billion. It also agreed in July to sell a health-care-software business to Dedalus Group for $525 million.