IBM to buy Apptio for automation technology

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IBM to buy Apptio for automation technology
IBM to buy Apptio for automation technology

Founded in 2007, Apptio sells online services that help manage information technology budgets, forecasting, and analysis

As part of a deeper push into automation technology, International Business Machines Corp. (IBM) is in talks to buy software company Apptio, according to people with knowledge of the matter.

One of the people, who asked not to be identified because they were discussing a private matter, said the parties are discussing a price in the range of $4.5 billion to $5 billion. Private equity firm Vista Equity Partners currently owns Apptio.

A spokesperson for Vista declined to comment. Representatives for IBM didn’t have an immediate comment. The two sides are in advanced talks, and an agreement could be reached over the weekend.

Founded in 2007, Apptio sells online services that help manage information technology budgets, forecasting, and analysis. The company said on its website that the majority of Fortune 100 companies use its products.

IBM chief executive officer Arvind Krishna, who took charge in 2020, has continued to shake up the 112-year-old company. IBM split off its Kyndryl business in 2021 and then divested the Watson Health division after the acquisition of Red Hat in 2019. He said last month that IBM is still focused on deals but that they would likely be smaller than the $34 billion Red Hat acquisition.

Roughly, if the $5 billion purchase price for Apptio would include debt, it is not yet clear.

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