IBM has announced its plans to acquire the cloud infrastructure tools provider HashiCorp for $6.4 billion. The deal is expected to close by the end of 2024 and will enhance IBM’s position in the hybrid cloud and AI space. IBM CEO Arvind Krishna highlighted HashiCorp’s track record in managing infrastructure complexity and application proliferation.
The acquisition is seen as a strategic move by IBM to address a larger share of the $1.1 trillion total addressable cloud market. HashiCorp’s automation capabilities for infrastructure and security lifecycle management are expected to complement IBM’s existing offerings in the hybrid cloud and AI technologies.
IBM plans to leverage HashiCorp’s Terraform platform, which is considered the industry standard for provisioning infrastructure in hybrid and multi-cloud environments. The deal is also expected to benefit IBM subsidiary Red Hat, with opportunities to expand partnerships and innovate in open-source technologies.
The move has been well received by shareholders and investors, with HashiCorp’s largest shareholders committing to vote in favor of the transaction. Both companies’ boards have already approved the deal, which is subject to regulatory approval.
In a statement, HashiCorp’s co-founder and CEO expressed excitement about joining IBM and the potential to accelerate their growth journey. The acquisition will allow HashiCorp’s products to reach a broader audience and serve more users and customers.
The financial performance of both companies has been positive, with HashiCorp reporting a net loss of $48.3 million in its fiscal fourth quarter, representing a significant improvement from the previous year. IBM reported revenue of $583.1 million in the most recent quarter, up 23% year-over-year.
HashiCorp has built a strong network of partners, with over 650 systems integrator and reseller partners. By joining forces with IBM, HashiCorp aims to expand its reach and offer enhanced products and services to customers and partners.
Overall, the acquisition of HashiCorp represents a significant step for IBM in strengthening its position in the cloud and AI market. The deal is expected to create synergies between the two companies and drive further growth and innovation in the hybrid cloud space.
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https://www.crn.com/news/cloud/2024/ibm-confirms-6-4b-hashicorp-purchase-by-year-s-end
