IBM completes $6.4B HashiCorp acquisition following regulatory approvals

IBM Corp. has completed its $6.4 billion acquisition of infrastructure automation provider HashiCorp Inc. after receiving approvals from both the U.S. Federal Trade Commission and the U.K.’s Competition and Markets Authority. The acquisition, initially expected to close by the end of 2024, faced delays due to regulatory scrutiny. HashiCorp offers tools for managing IT infrastructure, with a focus on Terraform and Vault, which will be integrated with IBM’s Ansible, OpenShift, and Guardium products to enhance infrastructure automation and cybersecurity. The integration aims to streamline provisioning and configuration management, while also improving cloud cost management through Terraform and Cloudability.

The acquisition is expected to become accretive to IBM’s adjusted earnings within a year and boost free cash flow from the second year onward. HashiCorp reported an adjusted operating income of $11 million on $173.4 million in revenue last quarter. The collaboration will leverage IBM’s global scale and R&D resources to expand HashiCorp’s reach and continue addressing infrastructure and security challenges.

Key takeaways

IBM has completed its $6.4 billion acquisition of HashiCorp after receiving regulatory approvals from the U.S. FTC and the U.K.'s CMA.
HashiCorp plans to integrate its tools, such as Terraform and Vault, with IBM's product portfolio, including Ansible, OpenShift, and Guardium.
The acquisition is expected to become accretive to IBM's adjusted earnings within a year and boost free cash flow from the second year onward.
HashiCorp certified its HCP Terraform Operator for Kubernetes to run on IBM's OpenShift, marking the beginning of product integration efforts.

IBM completes $6.4B HashiCorp acquisition following regulatory approvals - SiliconANGLE

Key takeaways

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