IBM to Buy HashiCorp for $6.4B; Stock Jumps 22.8% to $30.14

Apr 24, 2024, 05:22 PM

International Business Machines (IBM) is nearing a significant acquisition, as it is set to purchase cloud-software provider HashiCorp for approximately $35 per share, valuing the deal at around $6.4 billion. This strategic move is aimed at enhancing IBM's capabilities in cloud-based software products. The acquisition is part of IBM's broader strategy to expand its hybrid cloud management services. Concurrently, IBM reported its first-quarter earnings, with a revenue of $14.46 billion, up 1% year-over-year, and an operating EPS of $1.68, which slightly missed the expected revenue but exceeded the EPS forecast. Following the announcement, HashiCorp's stock surged 22.8%, reaching a share price of $30.14.