International Business Machines Corporation IBM is reportedly on the verge of acquiring cloud software provider HashiCorp Inc HCP, signaling potential growth for both entities.
An acquisition of HashiCorp would likely entail a premium above its current stock value, reported The Wall Street Journal.
Citing sources familiar with the matter, the report suggested that a deal for HashiCorp is likely to materialize soon, although there’s a possibility it may not proceed.
HashiCorp, headquartered in San Francisco, specializes in cloud infrastructure setup, boasting partnerships with numerous tech giants, including Cisco Systems Inc CSCO, RedHat (owned by IBM), and Datadog Inc DDOG.
As per the report, IBM is undergoing a strategic shift towards hybrid-cloud and artificial-intelligence domains under the leadership of CEO Arvind Krishna.
The company’s recent endeavors include ventures into quantum computing and blockchain technologies, evident from its $5 billion acquisition of software firm Apptio last year, enhancing its automation capabilities.
Recent reports indicate Salesforce Inc’s CRM withdrawal from negotiations to acquire Informatica Inc INFA, signaling a cautious approach in the sector.
Read Next: IBM’s Moment Of Truth As Earnings Expected To Impress With Strong AI Influence, Analyst Says
Price Action: HCP closed higher by 18.7% at $29.15 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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