• HashiCorp’s solutions enable clients to adopt a cloud-agnostic and interoperable strategy for managing multicloud environments.
  • The company’s primary product, Terraform, automates the setup of cloud instances and other hardware resources, in addition to monitoring and identifying any incorrect changes to configuration settings.

As projected, IBM Corp. has announced the acquisition of HashiCorp Inc., an infrastructure management provider, at a rate of USD 35 per share in cash, totaling USD 6.4 billion.

Yesterday, news surfaced regarding IBM’s discussions to acquire HashiCorp, suggesting that a deal could be finalized within days. As events unfolded, the agreement was indeed signed just one day later.

Hashicorp, which was founded in 2012, provides a range of open-source tools that businesses use to manage their cloud infrastructure. The company’s primary product, Terraform, is an automated system for configuring cloud instances and other hardware resources. It also monitors and identifies any incorrect modifications made to configuration settings.

HashiCorp’s solutions enable customers to adopt a cloud-agnostic and interoperable strategy for managing multicloud environments. The company generates revenue by offering cloud-hosted editions of its open-source tools via the HashiCorp Cloud Platform.

Presently, HashiCorp boasts a client base exceeding 4,400, including prominent organizations such as Bloomberg LP, Comcast Corp., Deutsche Bank AG, GitHub Inc., J.P Morgan Chase and Co., Starbucks Corp., and Vodafone Group Plc. Widely embraced in the developer community, HashiCorp’s tools reportedly enjoy extensive adoption, with usage by 85% of Fortune 500 companies.

IBM emphasized that acquiring HashiCorp is in line with its continual dedication to “deep focus and investment in hybrid cloud and AI, the two most transformational technologies for clients today.” IBM further elaborated that its acquisition of HashiCorp aligns strategically, forming a robust end-to-end hybrid cloud platform specifically designed to address the complexities driven by AI. This initiative is anticipated to expedite IBM’s expansion in pivotal domains like Red Hat, Watsonx, data security, IT automation, and consulting.

In correspondence via email, Jordan Berger, an Analyst at the Global Research Firm Third Bridge Group Ltd., stated, “Today’s announcement by IBM of its intent to acquire HashiCorp seems to represent a strategic step forward in the company’s agnostic hybrid cloud strategy.”

Following the acquisition, IBM intends to merge Red Hat’s Ansible Automation Platform with HashiCorp’s Terraform, streamlining application provisioning and configuration across hybrid cloud setups.

HashiCorp Chief Executive Dave McJannet said in a statement, “IBM’s leadership in hybrid cloud along with its rich history of innovation, make it the ideal home for HashiCorp as we enter the next phase of our growth journey.”

The acquisition is anticipated to be finalized by the end of 2024, subject to regulatory approvals, shareholder approval, and other customary closing conditions.