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IBM, or the International Business Machines Corporation, announced it will buy the San Francisco-based software company HashiCorp on Wednesday, April 24.
IBM's Strategic Acquisition
IBM's acquisition of HashiCorp, which specializes in Infrastructure Lifecycle Management and Security Lifecycle Management, will allow it to form a comprehensive end-to-end hybrid cloud platform. According to Forbes, this strategic move also aligns with the company's focus on hybrid cloud and artificial intelligence (AI), which are crucial in businesses today.
The deal comes a month after HashiCorp was reportedly looking for buyers. Established in 2012, it mainly offers commercial software and open-source tools for cloud infrastructure automation and management.
It simply helps businesses manage infrastructure, enhance security, improve cloud operations, and more. HashiCorp's products are used by major companies such as Comcast, Bloomberg, and JPMorgan Chase. Thus, with the acquisition of this company, IBM will expand its DevOps and automation portfolio.
Terms of the Deal
IBM and HashiCorp agreed to a $6.4 billion deal. The former will buy the latter at $35 per share in cash, and the tech company will pay using available cash on hand. It was revealed that the companies' respective boards of directors have already approved the transaction, but the acquisition is still subject to regulatory and HashiCorp shareholders' approvals.
"The global excitement surrounding generative AI has exacerbated these challenges and CIOs and developers are up against dramatic complexity in their tech strategies," IBM's chairman and chief executive officer, Arvind Krishna, said in a press release. "Combining IBM's portfolio and expertise with HashiCorp's capabilities and talent will create a comprehensive hybrid cloud platform designed for the AI era."
Armon Dadgar, co-founder and chief technology officer of HashiCorp, added, "Our strategy at its core is about enabling companies to innovate in the cloud while providing a consistent approach to managing cloud at scale. I am incredibly excited by today's news and to be joining IBM to accelerate HashiCorp's mission and expand access to our products to an even broader set of developers and enterprises."
Photo by: Denny Müller/Unsplash
