The deal for International Business Machines to purchase cloud software vendor HashiCorp is coming to a close.
International Business Machines (IBM.N.) is closing on a deal to acquire cloud software provider HashiCorp (HCP.O.). Following the Wall Street Journal’s initial report of the talks, Hashicorp’s stock shot up 24 percent, valuing the company at $6.1 billion.
IBM has concentrated on acquisitions to expand its cloud offerings under CEO Arvind Krishna. The surge in generative artificial intelligence has made cloud software more appealing since it facilitates the processing of large volumes of data.
HashiCorp, a California-based company, lets users set up and maintain their own cloud-based infrastructures. According to LSEG data, the company’s annual sales for the year ending January 31 increased by 22.5% to $583.1 million, above the average estimate of analysts at the time.
According to the WSJ story, a deal for HashiCorp might be finalized in the next few days, but there’s still a chance that the negotiations won’t lead to a transaction.
In 2023, IBM conducted nine acquisitions, including a $4.6 billion purchase of the technology spend-management platform Apptio from Vista Equity Partners.
The business’s largest buyout to date was its $34 billion, including debt, acquisition of Red Hat, a software company, in 2018.
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