https://www.investors.com/news/technology/ibm-hcp-hashicorp-acquisition-report/
A moment of silence, please.
4 replies (most recent on top)
WSJ coverage with more details:
IBM Nears Deal for Cloud-Software Provider --
Takeover could value HashiCorp at a premium to its market value of $4.9 billion
https://www.wsj.com/business/deals/ibm-nears-deal-for-cloud-software-provider-cf146448
By: Lauren Thomas and Laura Cooper
April 23, 2024 2:03 pm ET
The deal
IBM is nearing an acquisition of cloud-software provider HashiCorp.
The details
A deal for HashiCorp could come together in the coming days, according to people familiar with the matter. It’s still possible the talks may not result in a transaction.
A deal for HashiCorp would likely command a premium above where the stock is currently trading. HashiCorp had a market capitalization of $4.9 billion after its stock rose about 4% so far this year as of Tuesday afternoon.
San Francisco-based HashiCorp’s software helps companies set up their infrastructure in the cloud. It partners with hundreds of tech companies including Cisco, RedHat—owned by IBM—and Datadog according to its website.
The rationale
IBM, a longtime fixture in the U.S. technology landscape, has been in the midst of a makeover, transforming itself into a company focused on the hybrid-cloud and artificial-intelligence businesses. IBM Chief Executive Arvind Krishna has sharpened the company’s focus on areas including quantum computing and blockchain.
Last June, IBM struck a roughly $5 billion deal for software company Apptio, giving it greater automation capabilities. Later in the year, it sold the Weather Company assets, including the popular Weather.com platform, to the private-equity firm Francisco Partners.
The context
The deal would be a relatively small bite for IBM, which has a market capitalization of about $170 billion. But it would come at a time when M&A in the technology sector has been muted. Salesforce recently abandoned its talks to acquire Informatica, The Wall Street Journal reported.
Buying their ecosystem. Hashi folks are not going to like this news
Who? Never heard of them.
Must be where all the ESP budget went.