The UK Competition and Markets Authority (CMA) has approved IBM’s acquisition of HashiCorp for $6.4 billion. The deal raised antitrust concerns. IBM, one of the technology sector’s leading companies, decided to acquire its rival HashiCorp last year to strengthen its hybrid cloud strategy. After lengthy negotiations, the parties agreed on a $6.4 billion deal. Even though they aimed to close the deal by the end of 2024, in December, CMA launched an investigation into the sale, prolonging the process. THIRD MAJOR ACQUISITION IN THE SAME SECTOR IBM has long been pursuing a strategy of acquiring software companies that offer cloud-based services. The company acquired Red Hat, a major player in this field, for $34 billion in 2019. Four years after this deal, another significant industry player, Apptio, was sold to IBM for nearly $5 billion in 2023. Finally, the $6.4 billion agreement for HashiCorp has prompted competition authorities to take action. WHAT AREAS DOES HASHICORP PROVIDE SERVICES IN? Established in the US in 2012, software company HashiCorp offers tools and products that simplify processes for providing, securing, running, and connecting cloud computing infrastructure for its customers. Leading tools and platforms used by industry leaders include Terraform, Packer, Vault, Consul, Nomad, and Waypoint. Big names from various sectors such as Starbucks, Verizon, Epic Games, and Deutsche Bank are among HashiCorp’s customers. HYBRID CLOUD STRATEGY DOMINATES THE INDUSTRY IBM’s hybrid cloud strategy is an approach that enables businesses to securely distribute, operate, and manage their data and applications. This strategy aims to combine both private and public cloud environments to create a flexible and scalable IT infrastructure. IBM aims to help accelerate businesses’ digital transformation processes and gain a competitive advantage by acquiring companies that offer similar services, further enhancing its position in the industry. ONLY ONE APPROVAL LEFT TO OBTAIN If CMA approves the acquisition, the US Federal Trade Commission (FTC) has not yet made an official statement about the deal. If the FTC also approves, IBM will officially acquire HashiCorp.