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IBM buys software company for $5 billion

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IBM buys software company for $5 billion

Another deal is set for IBM – acquisition of the software company Apptio
(photo: IBM)

IBM is close to buying the software developer Apptio. The deal will cost the US IT corporation between $4.5 and $5 billion, he claims Bloomberg, citing its own sources.

Meanwhile, the Wall Street Journal reported that the two companies have already reached an agreement, so the deal could be officially announced in the coming days. IBM and Apptio declined to comment for now.

Founded in 2007, Apptio offers online services that help businesses manage, forecast and analyze IT budgets. The company has a suite of business intelligence applications that pull data from various financial, operational and billing systems to provide evidence-based information about the cost, quality and value of digital technologies.

Most Fortune 100 companies use Apptio products, according to the vendor’s website. In total, the company has more than 1,800 customers. Apptio is owned by investment firm Vista Equity Partners, which has also not yet commented on the IBM deal.

After becoming IBM’s CEO in 2020, Arvind Krishna began a massive transformation of the corporation. As a result of the changes, the new Kyndryl company was transferred to the managed infrastructure services business, incl. help with cloud migration, hosting, network management, etc.

As part of the restructuring, the IT giant is focusing on hybrid cloud and artificial intelligence. In addition, IBM sold its medical technology assets. We are talking about the Watson Health division, which was bought by the investment company Francisco Partners.

In May 2023, Arvind Krishna said that IBM would continue to acquire companies, but the deals would not be as large as the $34 billion purchase of enterprise software maker Red Hat in 2019.

The Wall Street Journal previously reported that IBM was considering selling its weather solutions division. The potential deal could be the US IT giant’s next step to streamline its business. In eight years of owning The Weather Company, IBM has developed its weather services, incl. with the addition of data from aircraft and smartphones to improve weather forecasts.

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