IBM nears acquisition of cloud software firm HashiCorp

IBM nears acquisition of cloud software firm HashiCorp

IBM is reportedly nearing the final stages of negotiations to acquire HashiCorp, a provider of cloud infrastructure software, with talks expected to conclude in the coming days. This development follows reports by the Wall Street Journal detailing ongoing discussions between the two companies, resulting in a notable 24% surge in HashiCorp’s stock price and pushing its market valuation to $6.1 billion.

Under the leadership of CEO Arvind Krishna, IBM has actively expanded its cloud services portfolio to meet the growing demand for cloud software, driven by advancements in generative artificial intelligence technologies. HashiCorp, headquartered in California, specializes in assisting users in developing and managing their cloud-based systems. The company reported a significant 22.5% increase in annual sales to $583.1 million for the fiscal year ending January 31, surpassing analysts’ expectations.

Although an announcement regarding the deal may be imminent, sources suggest there is still a possibility that the negotiations may not result in an agreement. If successful, this acquisition would augment IBM’s string of acquisitions in 2023, which included the noteworthy $4.6 billion purchase of Apptio. The potential acquisition of HashiCorp follows IBM’s largest deal to date, the $34 billion acquisition of Red Hat in 2018.

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