IBM to acquire HashiCorp for $6.4B

IBM and HashiCorp have entered into an agreement for IBM to acquire HashiCorp, a provider of infrastructure and security management products, for $6.4 billion. The acquisition aims to expand IBM’s hybrid cloud offerings and capabilities.

The transaction has been approved by both companies’ boards of directors but is subject to HashiCorp shareholder approval, regulatory review, and other customary closing conditions. IBM expects the acquisition to close by the end of 2024.

IBM stated that the acquisition will help clients manage increasingly complex hybrid and multi-cloud environments, a challenge that has grown with the rise of generative AI. By combining HashiCorp’s products with IBM’s existing portfolio, including Red Hat, IBM intends to provide an end-to-end platform for managing infrastructure, applications, and security across clouds and on-premises data centers.

HashiCorp’s products, which include Terraform for infrastructure provisioning and Vault for secrets management, as well as offerings for networking, orchestration, and development, are widely used by enterprises. According to the companies, HashiCorp has over 4,400 customers, including a majority of the Fortune 500.

HashiCorp was founded in 2012 and went public in 2021. The San Francisco-based company had revenue of $475.9 million in its fiscal year ended January 31, 2023, an increase of 52% year-over-year.

[Image courtesy: IBM]

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