IBM is nearing completion of its acquisition of HashiCorp, which will significantly expand IBM's cloud product portfolio, particularly in the management of generative AI and public cloud infrastructure.

This strategic acquisition may not only enhance IBM's attractiveness to existing and potential customers, but also enhance its competitive position in the global cloud computing market. With the increasing demand for efficient data processing and flexible cloud services in the market, IBM is expected to achieve a dual improvement in business growth and technological advantages by integrating HashiCorp's innovative technologies.

Market response

According to multiple media reports, IBM is about to complete its acquisition of HashiCorp, which caused HashiCorp's stock price to soar in late Tuesday trading, ultimately closing up 18.7% and reaching $29.15.

Merger and acquisition strategy

Under the leadership of CEO Arvind Krishna, IBM actively expands its cloud product portfolio through mergers and acquisitions. With the rise of generative AI technology, the demand for cloud software that can handle large amounts of data is increasing, and HashiCorp's technology will effectively enhance IBM's service capabilities.

HashiCorp's business model and revenue

HashiCorp provides software to help developers set up and manage public cloud infrastructure, and the company primarily collaborates with Amazon and Microsoft. The company's revenue increased by 22.5% in the most recent fiscal year, reaching $583.1 million, outperforming market expectations.

Background of Acquisition and IBM's Merger and Acquisition History

IBM's acquisition is part of its ongoing expansion strategy. Over the past year, IBM has completed up to 9 acquisitions, including paying $4.6 billion to acquire Apptio. In addition, IBM's acquisition of open-source software company Red Hat for $34 billion in 2018 was the largest transaction in the company's history.