IBM's $6.4 Bn HashiCorp Acquisition Aims To Strengthen Its Cloud Computing Position
IBM said the acquisition would be funded by cash on hand by paying USD 35 per share to HashiCorp
International Business Machines (IBM) is set to buy the software company Hashicorp in a USD 6.4 billion deal, according to a media report on Thursday.
The company aims to acquire HashiCorp as it is focused on expanding its cloud-based software products looking to fulfil AI-powered consumer demands.
IBM said the acquisition would be funded by cash on hand by paying USD 35 per share to HashiCorp, which will be based on a 42.6 per cent premium on the company’s share market closing on Monday.
Additionally, the adjusted core profit will be added within the first full year of closing, expected by the end of 2024.
Meanwhile, this news caused a surge in the software company’s share price by more than 4 per cent in extended trading on Wednesday. However, IBM saw its shares slide by 7 per cent following its first quarterly revenues, which were reported below the estimates.
In the first quarter, IBM witnessed a growth of 5.5 per cent in its software business. Recognising the growing importance of storing and analysing large volumes of data used in artificial intelligence programmes, the company has made a significant investment in its cloud business. This strategic move aims to cater to the increasing demand for efficient data management and processing capabilities.
