Through the acquisition of HashiCorp, IBM will develop an extensive end-to-end hybrid cloud platform built for AI-powered complexity while delivering more comprehensive hybrid and multi-cloud offerings to enterprise clients
Multi-cloud infrastructure automation firm HashiCorp to be acquired by IBM in $6.4bn deal. (Credit: Mark Ahsmann/Wikimedia Commons)
IBM has agreed to acquire US-based multi-cloud infrastructure automation company HashiCorp in a deal that represents an enterprise value of $6.4bn for the latter.
According to the terms of the definitive agreement, shareholders of the Nasdaq-listed HashiCorp will receive $35 per share in cash from the technology major.
Headquartered in San Francisco, California, HashiCorp helps businesses to automate multi-cloud and hybrid environments with infrastructure lifecycle management and security lifecycle management.
The multi-cloud infrastructure automation firm provides the infrastructure cloud on the HashiCorp Cloud Platform (HCP) for managed cloud services along with self-hosted enterprise solutions and community source-available products.
HashiCorp’s product suite includes Terraform for institutions to provision their cloud, private data centre, and software as a service (SaaS) infrastructure and manage infrastructure throughout its lifecycle.
The company also offers Vault identity-based security, Consul for service-based networking, Boundary for secure remote access, Nomad for workload orchestration, Packer for creating and managing images as code, and Waypoint internal developer platform.
HashiCorp co-founder and chief technology officer Armon Dadgar said: “Our strategy at its core is about enabling companies to innovate in the cloud, while providing a consistent approach to managing cloud at scale.
“The need for effective management and automation is critical with the rise of multi-cloud and hybrid cloud, which is being accelerated by today’s AI revolution.”
Through the acquisition of HashiCorp, IBM will develop an extensive end-to-end hybrid cloud platform built for artificial intelligence (AI)-powered complexity.
Besides, the deal is expected to deliver more comprehensive hybrid and multi-cloud offerings to enterprise clients.
Integrated with IBM and Red Hat, HashiCorp’s offerings support clients to automate the workload deployment and orchestration across dynamic infrastructure such as hyperscale cloud service providers, private clouds, and on-premises environments.
Furthermore, HashiCorp is anticipated to drive significant synergies for IBM, including across multiple strategic growth areas like watsonx, data security, Red Hat, IT automation and consulting.
IBM chairman and CEO Arvind Krishna said: “HashiCorp has a proven track record of enabling clients to manage the complexity of today’s infrastructure and application sprawl.
“Combining IBM’s portfolio and expertise with HashiCorp’s capabilities and talent will create a comprehensive hybrid cloud platform designed for the AI era.”
Both IBM and HashiCorp boards of directors have approved the deal.
Subject to HashiCorp shareholders’ approval, regulatory approvals, and other customary conditions, the transaction is anticipated to be completed by the end of this year.