Last updated: June 26, 2023, 7:18 PM IST
United States of America (USA)
The company is expanding its product base
IBM said Monday that its technology spend management platform will acquire Apptio from Vista Equity Partners for $4.6 billion in cash, in the latest deal to bolster its cloud and automation capabilities.
(Reuters) -IBM said Monday its technology spend management platform will acquire Apptio from Vista Equity Partners for $4.6 billion in cash, in the latest deal to bolster its cloud and automation capabilities.
Shares of IBM were slightly lower in premarket trading. IBM said it will fund the transaction with cash and expects the deal to close in the second half of 2023.
The deal comes as companies are slashing their technology budgets amid challenging macro conditions. IBM cut about 3,900 jobs early this year and reported revenue growth of less than 1% year-over-year in the March quarter.
The acquisition of Apptio, a software-as-a-service company with more than 1,500 customers and partnerships with cloud companies from Amazon.com’s AWS to Salesforce, will benefit IBM’s Red Hat business, AI portfolio and its consulting business, it said. the technology giant.
“Going forward, we are opportunistic (on M&A) and look for opportunities in software and consulting,” Senior Vice President Rob Thomas told Reuters in an interview.
Age-old IBM is refocusing to focus on newer AI and cloud-based offerings.
In 2019, it bought software provider Red Hat for about $34 billion, its largest acquisition ever, and spun off its IT infrastructure and data center company Kyndryl Holdings two years later. Last year, the company completed the sale of some of its healthcare data and analytics assets.
Founded in 2007, Seattle-based Apptio helps companies manage and understand their spending on cloud services and offers features such as IT budgeting, forecasting and financial analysis.
Apptio’s revenue was approximately $233 million in 2018 and is expected to grow at an annual rate of 11%-13% through fiscal year 2022, according to UBS analysts.
Private equity firm Vista Equity Partners took Apptio private in 2019 for $2 billion, about three years after the software company went public.
(This story has not been edited by News18 staff and was published from a syndicated news agency feed – Reuters)
