Subj : IBM acquires HashiCorp in multi-billion dollar deal to boost clou
To   : All
From : TechnologyDaily
Date : Thu Apr 25 2024 15:45:05

IBM acquires HashiCorp in multi-billion dollar deal to boost cloud reach

Date:
Thu, 25 Apr 2024 14:30:00 +0000

Description:
HashiCorp agrees to $6.4 billion takeover deal by IBM as the companies look 
to take on more of the market.

FULL STORY
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IBM has confirmed it has entered into a definitive agreement with HashiCorp 
in which it will acquire the California-based software company for $35 per 
share, equating to a $6.4 billion deal. 

In its announcement, IBM said the acquisition of HashiCorp is designed to 
bolster its position in the hybrid cloud and AI markets. 

Rather than selling off its business to IBM and closing down, HashiCorp has 
confirmed that it will continue to build products and services, but operating 
as a division of IBM Software with the backing of a much bigger company. IBM 
and HashiCorp 

Speaking about the deal, IBM CEO Arvind Krishna said: Enterprise clients are 
wrestling with an unprecedented expansion in infrastructure and applications 
across public and private clouds, as well as on-prem environments. 

Krishna added: HashiCorp has a proven track record of enabling clients to 
manage the complexity of today's infrastructure and application sprawl. 
Combining IBM's portfolio and expertise with HashiCorp's capabilities and 
talent will create a comprehensive hybrid cloud platform designed for the AI 
era. 

IBM likes what it sees in the deal, revealing an attractive financial 
opportunity and the potential to expand the total addressable market. The 
deal also aligns with the companys broader strategy. 

In IBMs most recent earnings call , CFO Jim Kavanaugh revealed that around 
70% of HashiCorps revenue currently comes from US companies, adding that only 
around one in five of the Forbes Global 2000 are HashiCorp customers, 
alluding to the potential for scaling the business under the IBM umbrella. 

In the week leading up to the announcement, HashiCorp shares rose by around 
34.8%. IBM investors seemed less sure about the deal, with share prices 
seeing a less impressive 1.6% uptick. More from TechRadar Pro These are the 
best cloud hosting providers around right now IBM Consulting is the latest to 
order an immediate return to office Store your data off-prem with the best 
cloud storage and best cloud backup tools



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Link to news story:
https://www.techradar.com/pro/ibm-acquires-hashicorp-in-multi-billion-dollar-d
eal-to-boost-cloud-reach


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