IBM Nears $5 Billion Deal to Acquire Apptio, Doubling Its Purchase Price


According to the Wall Street Journal, International Business Machines Co. (IBM) is in advanced talks to acquire cloud-based business software company Apptio Inc. in a deal worth more than double its purchase price nearly five years ago. The deal, which could be finalized over the weekend, is expected to be around $5 billion.

Apptio was taken private by Vista Equity Partners in January 2019 for $38 per share, or $1.94 billion. The company offers a cloud-based software platform that provides management and strategic planning solutions for businesses.

IBM's interest in Apptio comes as it aims to strengthen its presence in the cloud computing and software services market. In recent years, IBM has made strategic acquisitions to expand its consulting business, with Red Hat Inc. being a significant addition. Red Hat has become a key contributor to IBM's growth, generating a substantial portion of its revenue.

While IBM declined to comment on the potential deal, the acquisition of Apptio would align with the company's ongoing efforts to enhance its software offerings and solidify its position in the industry.

IBM's stock, along with other technology companies, experienced a decline in recent trading sessions. However, the potential acquisition of Apptio showcases IBM's commitment to growth and adaptation in an ever-evolving market.

Next Post Previous Post
No Comment
Add Comment
comment url