The acquisition is expected to accelerate innovation and enhance HashiCorp's go-to-market, growth, and monetization initiatives. HashiCorp's capabilities will enable organizations to automate their hybrid and multi-cloud environments, addressing the challenges faced by developers working with increasingly heterogeneous, dynamic, and complex infrastructure strategies. The deal is expected to close by the end of 2024.
Key takeaways:
- IBM is set to acquire HashiCorp Inc., a leading multi-cloud infrastructure automation company, for $6.4 billion, expanding its suite of hybrid and multi-cloud lifecycle management products.
- The acquisition is expected to drive significant synergies across multiple strategic growth areas for IBM, including Red Hat, watsonx, data security, IT automation and Consulting.
- The transaction is expected to be accretive to Adjusted EBITDA within the first full year, post close, and free cash flow in year two.
- HashiCorp's offerings will help IBM's clients manage the complexity of today's infrastructure and application sprawl, and are expected to accelerate innovation and enhance its go-to-market, growth and monetization initiatives.