April 25, 2024 at 06:15AM
IBM confirms acquisition of HashiCorp for $6.4 billion, to enhance multi-cloud and hybrid capabilities. Deal to close by year end, pending regulatory approval. IBM aims to leverage HashiCorp’s expertise in AI, data security, and IT automation to bolster its hybrid cloud platform. HashiCorp’s strong customer base and cybersecurity solutions are highlighted. IBM shares fell 9% after first quarter revenue disappointment. SecurityWeek analysis shows $50.4 billion in disclosed cybersecurity M&A deals in 2023.
Summary of the meeting notes:
– IBM confirmed the acquisition of HashiCorp in a multi-billion dollar deal to enhance its capabilities for multi-cloud and hybrid environments.
– The deal is approved by both companies’ boards but still requires regulatory approval, with an expected close by the year-end.
– IBM will pay $35 per share for HashiCorp, totaling $6.4 billion, using available cash.
– The acquisition will strengthen IBM’s end-to-end hybrid cloud platform and enhance areas like generative AI, data security, IT automation, and consulting.
– HashiCorp has over 4,400 customers, including 85% of Fortune 500 companies, providing products for cybersecurity such as Boundary and Vault.
– IBM’s shares fell 9% in after-hours trading due to lower-than-expected first quarter revenue, particularly in security software.
– SecurityWeek’s analysis revealed 413 cybersecurity-related M&A deals announced in 2023, with a total disclosed value of around $50.4 billion.
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