IBM is reportedly nearing a deal to acquire cloud software provider HashiCorp, as per a source.The potential acquisition has caused a significant surge in HashiCorp’s stock. Almost 24 percent increase, resulting in a market value of US$6.1 billion ($9.4 billion), following initial reports by the Wall Street Journal regarding the discussions.
Under the leadership of CEO Arvind Krishna, IBM has been strategically focused on bolstering its cloud offerings through acquisitions.
The growing prominence of generative artificial intelligence has heightened the appeal of cloud software, given its ability to efficiently process vast volumes of data.
Headquartered in California, HashiCorp specializes in enabling customers to establish, manage, and secure their infrastructures on the cloud.
While a deal for HashiCorp is anticipated to be finalized in the coming days, it remains possible that the negotiations may not culminate in a transaction, as per the WSJ report.
IBM’s acquisition strategy has been active, with nine acquisitions completed in 2023. Including the purchase of technology spend-management platform Apptio from Vista Equity Partners for US$4.6 billion.
Notably, IBM’s largest acquisition to date remains its 2018 purchase of software company Red Hat for US$34 billion, including debt.