IBM (NYSE: IBM) has announced the acquisition of HashiCorp for $64 billion in an all-cash transaction, furthering its commitment to hybrid cloud strategies.
The acquisition, which was completed on June 26th, 2023, will see IBM acquire HashiCorp for $35 per share in cash, representing an enterprise value of $64 billion net of cash.
HashiCorp is a leading provider of open source infrastructure automation tools, including Terraform for provisioning and managing infrastructure, Vault for managing secrets, Consul for service discovery, and Nomad for container orchestration.
IBM's acquisition of HashiCorp is seen as a strategic move to strengthen its position in the hybrid cloud market, where organizations are increasingly adopting a mix of on-premises and cloud-based infrastructure.
By integrating HashiCorp's infrastructure automation capabilities with its own cloud and AI technologies, IBM aims to provide customers with a more comprehensive hybrid cloud solution.
The acquisition is expected to be accretive to IBM's earnings in the first year after closing, and IBM expects to realize $300 million in annual cost synergies by the third year after closing.
IBM has been actively expanding its hybrid cloud portfolio in recent years, with the acquisition of Red Hat in 2019 being a key milestone.
The acquisition of HashiCorp further strengthens IBM's position as a leading provider of hybrid cloud solutions for enterprises.
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