IBM announced it will acquire HashiCorp in a deal valued at $6.4 billion to boost its cloud-based software products and tap into the demand driven by AI-powered advancements. HashiCorp’s shares rose over 4% in extended trading following news of the deal, while IBM’s stock fell 7% as its first-quarter revenue missed estimates.
IBM will pay $35 per share for HashiCorp, representing a 42.6% premium to the closing price on Monday. The acquisition will strengthen IBM’s AI and cloud capabilities, adding California-based HashiCorp’s expertise in managing cloud infrastructure. The deal, expected to close by the end of 2024, will be funded by IBM’s cash reserves and is projected to add to adjusted core profit in the first full year after closing.