For nearly $5 billion, IBM is in advanced talks to buy software developer Apptio, giving the IT behemoth greater automation capabilities. Apptio, a company owned by private equity firm Vista Equity Partners, offers tools to assist businesses in tracking the software and services they utilize and improving cost management.
Financial behemoths Allstate and Bank of America have been clients of the company. The parties are engaged in advanced negotiations for a purchase that, if no unforeseen issues arise, could be completed over the weekend. It’s unclear if the debt is included in the buying price.
Deal for Software Provider
An area that IBM has been looking to expand is the management of businesses‘ technology spending, where Apptio is a major participant. IBM is currently undergoing a makeover to become a business focused on the hybrid cloud and artificial intelligence sectors.
It made its largest acquisition to date in 2019 when it purchased software provider Red Hat for around $35 billion to expand its cloud computing business.
- IBM talks to buy Apptio for $5 billion for automation capabilities.
- IBM expands technology spending management, focusing on hybrid cloud and AI.
- IBM’s Weather division may fetch over $1 billion for sale.
A significant leader in IT infrastructure and data center management, Kyndryl Holdings, was one of the companies that IBM recently spun off or disposed of.
The difficulties of using AI in healthcare were highlighted by IBM’s 2022 completion of the sale of the healthcare data and analytics assets that were a part of its IBM Watson Health unit.
The Weather Company’s business-to-business, mobile, and cloud-based operations, including Weather.com, are all part of IBM’s weather division, which may fetch more than $1 billion in a sale, according to sources familiar with the situation. It was anticipated to draw investors with private equity.
Apptio and IBM have worked together before to assist their customers in using data to make better business decisions. When compared to the same period in 2022, deal-making in the US has decreased by roughly 40%. The sale of Apptio would be a unique private equity exit.
