- Acquisition would be funded by cash on hand and would add to adjusted core profit within the first full year of closing, expected by the end of 2024.
IBM will acquire HashiCorp for $35 per share in cash, representing an enterprise value of $6.4 billion, to focus deep into hybrid cloud and AI.
“Enterprise clients are wrestling with an unprecedented expansion in infrastructure and applications across public and private clouds, as well as on-prem environments. The global excitement surrounding generative AI has exacerbated these challenges and CIOs and developers are up against dramatic complexity in their tech strategies,” Arvind Krishna, IBM chairman and chief executive officer, said.
The rise of cloud-native workloads and associated applications is driving a radical expansion in the number of cloud workloads enterprises are managing. In addition, generative AI deployment continues to grow alongside traditional workloads.
Widescale adoption
IBM said the HashiCorp acquisition would be funded by cash on hand and would add to adjusted core profit within the first full year of closing, expected by the end of 2024.
California-based HashiCorp allows customers to establish and manage their infrastructures on the cloud.
HashiCorp boasts a roster of more than 4,400 clients, including Bloomberg, Comcast, Deutsche Bank, GitHub, J.P Morgan Chase, Starbucks and Vodafone.
HashiCorp’s offerings have widescale adoption in the developer community and are used by 85 per cent of the Fortune 500.
The boards of directors of IBM and HashiCorp have both approved the transaction. The acquisition is subject to approval by HashiCorp shareholders, regulatory approvals and other customary closing conditions.