American multinational technology corporation, the International Business Machines Corporation (IBM), has acquired cloud-based software platform Apptio for $4.6 billion to drive significant synergies across several key growth areas.
As technology is changing the business space at a very fast pace, IBM’s acquisition of Apptio will accelerate the advancement of IBM’s IT automation capabilities and enable enterprise leaders to deliver enhanced business value across technology investments.
Speaking on the acquisition of Apptio, CEO, and Chairman of Apptio Arvind Krishna said,
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“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’s offerings combined with IBM’s IT automation software and Watsonx AI platform, give clients the most comprehensive approach to optimize and manage all of their technology investments.”
Also commenting on the deal, Apptio Co-Founder and CEO Sunny Gupta said,
“Our customers are evolving to a complex digital-first, hybrid world where technology investments are distributed and decentralized but all innovation must be aligned with clear business outcomes. 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 disclosed that it will finance the transaction with cash on hand and expects the deal to close in the latter half of 2023. The deal marks the century-old IT technology major reorients itself to focus on newer AI and cloud-based offerings.
The company’s Integration of Apptio’s software on its platform, will help businesses around the world manage and optimize enterprise IT spend and derive tangible financial value and operational improvement.
Apptio is bringing a sizable book of customers to IBM’s 1,500 enterprises, including more than half of the Fortune 100. In addition, Apptio will bring IBM $450 billion of anonymized IT spend data, unlocking new insights for clients and partners.
Apptio partners and integrates with leading companies such as Salesforce, Oracle, Microsoft Azure, ServiceNow Amazon Web Services, and several others.
Notably, IBM’s acquisition of Apptio is a continuation of its deep focus and investment in hybrid cloud and AI and is expected to drive significant synergies across several key growth areas, which includes automation, IBM consulting, and IBM’s broader AI Portfolio amongst others.
IBM is a publicly traded company and one of 30 companies in the Dow Jones Industrial Average. It is among the world’s largest employers, with over 297,900 employees worldwide in 2022.
Despite its relative decline within the technology sector, IBM remains the seventh-largest technology company by revenue, and 49th largest overall, according to the 2022 Fortune 500. It is also consistently ranked among the world’s most recognizable, valuable, and admired brands.