One of the leading providers of global hybrid cloud and AI, and consulting expertise, IBM on Monday announced a deal to acquire Apptio Inc, for $4.6 billion. This acquisition is expected to accelerate the advancement of IBM’s IT automation capabilities and enable enterprise leaders to deliver enhanced business value across technology investments.
IBM entered into a definitive agreement with Vista Equity Partners to purchase Apptio.
IBM’s share price will be in focus today. In the pre-market trade, IBM traded lower by 0.6% to $128.68 apiece.
IBM is expected to acquire Apptio with available cash on hand. Currently, the transaction is subject to regulatory approvals and other customary closing conditions, however, it is expected to close in the latter half of 2023.
Apptio along with IBM’s IT automation software and its Watsonx AI platform — is expected to enable businesses around the world to manage and optimize enterprise IT spend and derive tangible financial value and operational improvement.
Also, Apptio and the performance optimization and observability capabilities of IBM’s IT automation software like Turbonomic, Instana, and AIOps, will give clients a 360-degree technology business management platform, providing a “virtual command center” for spend management and optimization stretching across their entire technology landscape.
Further, Apptio will bring to IBM $450 billion of anonymized IT spend data, unlocking new insights for clients and partners.
Arvind Krishna, CEO and chairman, of IBM, said, “Apptio’s offerings combined with IBM’s IT automation software and watsonx AI platform, gives clients the most comprehensive approach to optimize and manage all of their technology investments.”
Apptio is an established, growing, and profitable technology business management and FinOps leader, with over 1,500 clients, serving more than half of the Fortune 100.
Further, the acquisition of Apptio is a continuation of IBM’s deep focus and investment in hybrid cloud and AI and is expected to drive significant synergies across several key growth areas for IBM, including automation, Red Hat, IBM’s broader AI portfolio, and IBM Consulting, as well as a strong partnership with other leading systems integrators like Accenture, KPMG, Deloitte and EY.
According to Krishna, technology is changing business at a rate and pace we’ve never seen before. To capitalize on these changes, it is essential to optimize investments that drive better business value, and Apptio does just that.
Sunny Gupta, Apptio co-founder and CEO said, “We are so excited to be joining IBM and combining our industry-leading offerings with IBM’s global presence and strong portfolio across AIOps, automation, and hybrid cloud offerings.”
Moreover, IBM will also deliver new innovations by augmenting watsonx with Apptio’s anonymized FinOps data.
While Apptio s expected to benefit from IBM’s long-established scale and reach, working with clients and partners across more than 175 countries.
Adding to the development, Robert F. Smith, founder, chairman, and CEO of Vista Equity Partners said, “Apptio has transformed how leading organizations optimize their IT spend and performance for better outcomes. We are proud of these shared accomplishments and look forward to seeing Apptio further evolve with IBM.”
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Updated: 26 Jun 2023, 06:37 PM IST