IBM spends $4.6 billion in cash to acquire a software company.

IBM will spend $4.6 billion in cash to acquire Apptio. The deal is expected to close in the second half of 2023 and comes as businesses are cutting technology budgets due to macroeconomic conditions. IBM itself laid off 3,900 employees earlier this year and its first-quarter revenue increased by only 1% compared to the same period last year.

IBM wants to offer more modern products and services. (Photo: Reuters)

The acquisition of Apptio – a SaaS company with over 1,500 customers and partnerships with giants like AWS and Salesforce – will benefit IBM's Red Hat division, AI portfolio, and consulting division. In an interview with Reuters, Vice President Rob Thomas said that IBM will seek opportunities in the software and consulting sectors in the future.

IBM, a company with a century-long history, is reorienting itself to focus on AI and cloud-based services. In 2019, it acquired software provider Red Hat for $34 billion, marking its largest acquisition to date. Two years later, Kyndryl Holdings, its data center and IT infrastructure division, was spun off. In 2022, the company sold some assets in its medical data and analytics business.

Apptio was founded in 2007 with the goal of helping businesses manage spending on cloud services and providing functions such as IT budgeting, forecasting, and financial analysis. In 2018, Apptio's revenue was $233 million and is projected to grow by 11-13% annually.

Before being sold to IBM, Apptio belonged to Vista Equity Partners, which invested $1.94 billion to take Apptio private in 2018.

(According to Reuters)

Big Tech is cutting costs and focusing on AI. Alphabet, Microsoft, Amazon, and Meta have all highlighted massive investments in large language modeling (LLM), the technology behind popular chatbots like ChatGPT.

Source: https://vietnamnet.vn/ibm-chi-4-6-ty-usd-tien-mat-mua-mot-hang-phan-mem-2158682.html