IBM to scoop up privately held software company in a bid to help simplify management of IT services
International Business Machines Corp. plans to acquire Apptio Inc. in a deal that values the maker of financial and operational-management software at $4.6 billion, the technology giant confirmed Monday morning.
IBM IBM, +1.48% is purchasing Apptio from Vista Equity Partners, which took the company private back in early 2019. The Wall Street Journal reported Friday that IBM’s deal for Apptio was near.
Shares of IBM were off 0.4% in Monday’s premarket action.
The company noted in its release that Apptio has seen growing usage as companies expand their information-technology work across different private and public clouds with multiple service providers, adding complexity that Apptio’s software can help manage.
“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,” IBM Chief Executive Arvind Krishna said in a release.
Further, Apptio “will bring to IBM $450 billion of anonymized IT spend data, unlocking new insights for clients and partners,” IBM noted in that release.
IBM said it plans to conduct the transaction using cash on hand and anticipates that the deal will close in the second half of 2023.
“Strategically, we think this asset aligns with IBM’s hybrid cloud/AI focus and we believe some of the capabilities related to cloud spend management are particularly pertinent in an uncertain macro environment (helps organizations scrutinize IT spending),” Evercore ISI analyst Amit Daryanani wrote in a note to clients over the weekend after deal reports surfaced.