IBM (NYSE: IBM) has agreed to acquire HashiCorp (Nasdaq: HCP) for approximately $6.4 billion, or $35 per share in cash, to expand its infrastructure and security lifecycle management capabilities designed to help organizations automate their multicloud and hybrid cloud environments amid the rapid deployment of artificial intelligence technologies.
IBM said Wednesday the boards of directors of both companies have cleared the transaction, which is expected to conclude by the end of 2024, subject to approval by HashiCorp shareholders, regulatory clearances and other customary closing conditions.
“Enterprise clients are wrestling with an unprecedented expansion in infrastructure and applications across public and private clouds, as well as on-prem environments. The global excitement surrounding generative AI has exacerbated these challenges and CIOs and developers are up against dramatic complexity in their tech strategies,” said Arvind Krishna, chairman and CEO of IBM.
“HashiCorp has a proven track record of enabling clients to manage the complexity of today’s infrastructure and application sprawl. Combining IBM’s portfolio and expertise with HashiCorp’s capabilities and talent will create a comprehensive hybrid cloud platform designed for the AI era,” Krishna added.
IBM expects HashiCorp’s capabilities to drive synergies across strategic growth areas, including data security, watsonx, Red Hat and IT automation and consulting, and anticipates the deal to be accretive to adjusted earnings before interest, taxes, depreciation and amortization in the first full year post-close and free cash flow in the second year.
San Francisco-based HashiCorp has more than 4,400 customers and supports them through its portfolio of offerings, including Terrafom and Vault.
