IBM has committed to acquiring HashiCorp Inc., a company specializing in multi-cloud infrastructure automation, in a transaction that values the company at $6.4 billion.
HashiCorp aids businesses by providing a suite of products to manage infrastructures and security life cycles in multi-cloud and hybrid environments. These tools are instrumental for companies seeking to streamline and automate their processes.
Arvind Krishna, IBM's CEO, voiced that businesses are currently grappling with an exponential increase in infrastructure and applications spread across private and public clouds as well as on-site environments. The burgeoning interest in generative AI has further complicated the tech strategies of organizations, leading CIOs and developers to face unparalleled complexity.
The terms stipulate that IBM will purchase HashiCorp at $35 per share in cash, which would aggregate to a net transaction value of $6.4 billion. IBM intends to fund the acquisition using its available cash reserves.
Both IBM and HashiCorp's board of directors have consented to the transaction. Now, it only remains for HashiCorp shareholders to approve the acquisition. Standard protocol dictates various regulatory approvals and the fulfillment of standard closing conditions.
The deal is projected to be finalized by the close of 2024.
