IBM’s $6.4 Billion Major Acquisition: In What Field Does HashiCorp Provide Services?
The Competition and Markets Authority (CMA) of the United Kingdom has approved IBM’s acquisition of HashiCorp for $6.4 billion. The agreement had raised antitrust claims. IBM, one of the leading companies in the technology sector, decided to acquire its competitor HashiCorp last year to strengthen its hybrid cloud strategy. After lengthy negotiations, the parties agreed on a deal worth $6.4 billion. Although they aimed to finalize the agreement by the end of 2024, in December, the CMA decided to launch an investigation into the sale, delaying the process.
THIRD MAJOR ACQUISITION FROM THE SAME SECTOR
IBM has been pursuing a strategy of acquiring software companies offering cloud-based services for a long time. The giant company acquired Red Hat, which provides services in this field, for $34 billion in 2019. Four years after this deal, in 2023, another major player in the sector, Apptio, was also sold to IBM for nearly $5 billion. The recent agreement to acquire HashiCorp for $6.4 billion raises concerns with competition authorities.
WHAT AREAS DOES HASHICORP PROVIDE SERVICES IN?
Founded in the United States in 2012, software company HashiCorp offers tools and products that facilitate cloud computing infrastructure provisioning, securing, running, and networking processes for its customers. Leading industry tools and platforms such as Terraform, Packer, Vault, Consul, Nomad, and Waypoint are among their offerings. Major names in various sectors like Starbucks, Verizon, Epic Games, and Deutsche Bank are among HashiCorp’s clients.
HYBRID CLOUD STRATEGY DOMINATES THE INDUSTRY
IBM’s hybrid cloud strategy is an approach that enables businesses to securely deploy, run, and manage their data and applications. It aims to combine private and public cloud environments to create a flexible and scalable IT infrastructure. IBM, aiming to accelerate businesses’ digital transformation processes and help them gain a competitive advantage, has significantly strengthened its position in the industry by acquiring companies providing similar services.
ONLY ONE APPROVAL LEFT TO BE OBTAINED
While the CMA approves the acquisition, the U.S. Federal Trade Commission (FTC) has not made an official statement regarding the deal yet. If the FTC also approves, IBM will officially incorporate HashiCorp into its organization.
