At a March 16 afterparty for the season premiere at Hyde Kitchen + Cocktails in L.A., the DWTS duo were spotted “canoodling,” according to an onlooker.
“They came in holding hands and were caressing each other’s backs,” says the source
The pair, who arrived together, “were having a good time and enjoying each others company,” a second source tells PEOPLE.
Herjavec first signed on to do the show after the 51-year-old multimillionaire tech mogul hit rock bottom and even contemplated suicide after calling it quits with wife of 24 years.
Since then he’s been spending eight hours a day practicing with Johnson.
“The entire cast and crew of Dancing with the Stars is evolving into an extended family and is incredibly supportive,” Herjavec tells PEOPLE.
“Kym has become a great friend, and it is so much fun to be able to share this experience with her.”
And when it comes to taking home the trophy this season?
“I’m just super excited,” he says, “because it’s a different experience, one that’s definitely out of my comfort zone.”
Reporting by MELODY CHIU