IBM Acquires Apptio for $4.6 Billion to Enhance IT Automation Capabilities
IBM, one of the leading providers of global hybrid cloud and AI, and consulting expertise, has announced its acquisition of Apptio Inc for $4.6 billion. This acquisition is expected to enhance IBM’s IT automation capabilities and enable enterprise leaders to deliver enhanced business value across technology investments. IBM entered into a definitive agreement with Vista Equity Partners to purchase Apptio. The transaction is expected to close in the latter half of 2023, subject to regulatory approvals and other customary closing conditions.
Apptio, along with IBM’s IT automation software and its Watsonx AI platform, is expected to enable businesses to manage and optimize enterprise IT spend and derive tangible financial value and operational improvement. Further, Apptio will bring to IBM $450 billion of anonymized IT spend data, unlocking new insights for clients and partners.
The acquisition of Apptio is a continuation of IBM’s deep focus and investment in hybrid cloud and AI and is expected to drive significant synergies across several key growth areas for IBM. According to Arvind Krishna, CEO and chairman of IBM, technology is changing business at a rate and pace we’ve never seen before. To capitalize on these changes, it is essential to optimize investments that drive better business value, and Apptio does just that.
Apptio is an established, growing, and profitable technology business management and FinOps leader, with over 1,500 clients, serving more than half of the Fortune 100. Sunny Gupta, Apptio co-founder, and CEO said, “We are so excited to be joining IBM and combining our industry-leading offerings with IBM’s global presence and strong portfolio across AIOps, automation, and hybrid cloud offerings.”
IBM’s share price will be in focus today, with the company expected to acquire Apptio with available cash on hand. The acquisition of Apptio is expected to drive significant synergies across several key growth areas for IBM, including automation, Red Hat, IBM’s broader AI portfolio, and IBM Consulting, as well as a strong partnership with other leading systems integrators like Accenture, KPMG, Deloitte, and EY.
In summary, IBM’s acquisition of Apptio for $4.6 billion is expected to enhance the company’s IT automation capabilities and enable enterprise leaders to deliver enhanced business value across technology investments. Apptio, along with IBM’s IT automation software and its Watsonx AI platform, is expected to enable businesses to manage and optimize enterprise IT spend and derive tangible financial value and operational improvement.
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