IBM Cloud: IBM to buy Hashicorp for $6.4 billion

IBM is set to buy out HashiCorp, a vendor that makes software to help businesses manage digital infrastructure, for $6.4 billion. It will pay $35 per share for HashiCorp. The company’s stock had been trading at a price of $24.88 before the deal was announced.

"Enterprise clients are wrestling with an unprecedented expansion in infrastructure and applications across public and private clouds, as well as on-prem environments,” Krishna said. “The global excitement surrounding generative AI has exacerbated these challenges and CIOs and developers are up against dramatic complexity in their tech strategies.

"HashiCorp has a proven track record of enabling clients to manage the complexity of today's infrastructure and application sprawl. Combining IBM's portfolio and expertise with HashiCorp's capabilities and talent will create a comprehensive hybrid cloud platform designed for the AI era."

Armon Dadgar, HashiCorp co-founder and chief technology officer, said: "Our strategy at its core is about enabling companies to innovate in the cloud, while providing a consistent approach to managing cloud at scale. The need for effective management and automation is critical with the rise of multi-cloud and hybrid cloud, which is being accelerated by today's AI revolution.