IBM has announced its intention to acquire HashiCorp, a multi-cloud infrastructure automation company, for $35 per share in cash, which values the company at approximately $6.4 billion. The acquisition is expected to close in the second half of 2023, subject to regulatory approvals and other customary closing conditions.
HashiCorp is a leader in providing open-source tools and commercial software products for cloud infrastructure automation, orchestration, and management. Its offerings include Terraform for infrastructure automation, Vault for secrets management, Consul for service discovery and networking, and Vagrant for development environments. These tools help organizations manage infrastructure as code, automate application deployment, enhance security, and improve cloud infrastructure operations.
HashiCorp has over 4,400 clients, including large enterprises like Bloomberg, Comcast, and J.P. Morgan Chase. Its products are also widely used in the developer community, with 85% of Fortune 500 companies using its services.
The acquisition of HashiCorp is a strategic move for IBM as it looks to strengthen its position in the hybrid cloud market. HashiCorp’s products complement IBM’s existing hybrid cloud portfolio, which includes Red Hat and Watsonx. The combined offering will provide customers with a comprehensive platform for managing both public and private clouds as well as on-premises environments.
The acquisition is also expected to boost IBM’s AI capabilities. HashiCorp’s products can be used to automate the deployment and management of AI workloads, which can help organizations improve the efficiency and effectiveness of their AI initiatives.
Overall, the acquisition of HashiCorp is a significant step for IBM as it looks to expand its presence in the hybrid cloud and AI markets. The combination of HashiCorp’s products and IBM’s existing offerings will provide customers with a comprehensive platform for managing their IT infrastructure and workloads.
