IBM nearing deal for HashiCorp

2 weeks ago AndyC

IBM is nearing a deal to buy cloud software provider HashiCorp, according to a person familiar with the matter.

Hashicorp’s stock surged 24 percent, giving it a market value of US$6.1 billion ($9.4 billion), after the Wall Street Journal first reported the talks.

Under CEO Arvind Krishna, IBM has focused on acquisitions to build out its cloud offerings.

The boom in generative artificial intelligence has increased the attractiveness of cloud software as it helps process vast amounts of data.

California-based HashiCorp allows customers to establish, manage and secure their infrastructures on the cloud.

A deal for HashiCorp could be finalised in the coming days, but it is still possible that the talks may not result in a transaction, according to the WSJ report.

HashiCorp declined to comment when contacted by Reuters.

IBM completed nine acquisitions in 2023, including a deal for technology spend-management platform Apptio from Vista Equity Partners for US$4.6 billion.

The company’s 2018 acquisition of software company Red Hat for US$34 billion, including debt, remains its biggest buyout to date.

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AndyC

Andy Curtis is an award-winning security consultant, researcher and public speaker. He has been working in the computer security industry since the early 1990s, having been employed by state and federal government, leading healthcare and banking providers across three continents. He has given talks about computer security for some of the world’s largest companies, worked with law enforcement agencies on investigations into hacking groups, and is a regular voice on TV and radio explaining IT security threats.

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