IBM and HashiCorp Inc., a multi-cloud infrastructure automation company, announced a final agreement under which IBM acquires HashiCorp for $35 per share in cash, representing a corporate value of $6.4 billion. This announcement is a continuation of IBM's investment in hybrid cloud and artificial intelligence.
HashiCorp's capabilities enable enterprises to automate infrastructure and security lifecycle management by providing a system for accounting for critical workflows needed for hybrid and multi-cloud environments. HashiCorp's Terraform is the industry standard for building infrastructure in such environments. HashiCorp's offerings help customers adopt a cloud-independent and highly compatible approach to managing multi-cloud environments.
The acquisition of HashiCorp by IBM creates a comprehensive hybrid cloud platform built to solve complex tasks controlled by artificial intelligence.
HashiCorp has more than 4,400 clients, including Bloomberg, Comcast, Deutsche Bank, GitHub, J.P. Morgan Chase, Starbucks and Vodafone. According to the company, HashiCorp's offerings have become widespread in the developer community and are used by 85% of Fortune 500 companies. In fiscal year 2024, HashiCorp's products for the infrastructure and security community were downloaded more than 500 million times.
The boards of directors of IBM and HashiCorp approved the deal. The acquisition is subject to approval by HashiCorp shareholders, regulatory approval, and other customary closing conditions.
The company's largest shareholders and investors, who collectively own about 43% of HashiCorp's voting shares, entered into a voting agreement with IBM, according to which each of them agreed to vote with all their ordinary shares in favor of the transaction and against any alternative transactions.
The deal is expected to be completed by the end of 2024.
IBM (International Business Machines) is an American company headquartered in Armonk, New York. IBM is one of the world's largest manufacturers and suppliers of hardware and software, as well as IT services and consulting services.
HashiCorp is an American company, The Infrastructure Cloud™, which helps organizations automate multi-cloud and hybrid environments using Infrastructure Lifecycle Management and Security Lifecycle Management. HashiCorp offers an infrastructure cloud on the HashiCorp Cloud Platform (HCP) for managed cloud services, as well as stand-alone enterprise offerings and products available to the community. The company is headquartered in San Francisco, California.
