Ibm Close To 5 Billion Deal For Acquisition Of Apptio

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Ibm Close To 5 Billion Deal For Acquisition Of Apptio

IBM Close To $5 Billion Deal For Acquisition Of Apptio

According to media reports, IBM is about to close a $5 billion deal that will allow it to acquire Apptio. The $5 billion worth deal will allow IBM to expand its service offering since Apptio is also a prominent software company.

The proposed deal could be completed within the next few days, but the exact details of the deal are still unknown. For starters, we don't know whether the debt will also be included in the purchase price or not!

When IBM was approached for comments, they declined to respond, and the same thing happened with Apptio as well. But despite the reluctance to comment, there are strong reports that a deal is indeed happening.

In 2018, Apptio was bought by Vista Equity Partners for a sum of $1.94 billion. After the purchase, the company was taken private, but that could change soon after the recent deal since IBM is a publicly traded company.

Apptio is involved in providing software for hybrid business management and could management. For a tech company like IBM, this acquisition will allow it to strengthen its footprint in the cloud services sector.

In 2021, IBM bought Turbonomic by paying $1.5 billion. Similarly, the company paid $34 billion to buy Red Hat, which was also a prominent technology company.

If we look at the history, it becomes clear that IBM acquires new tech companies every few years. And this time, it appears that Apptio is the company that will become a part of the IBM empire. For now, IBM is trading near $129.43 on the NYSE, but its price could jump higher once the deal details are made public.

However, we also can't discount the fact that SECP or another governing body might interfere in the deal due to anti-competitive practices. After all, we have already seen how the Microsoft & Activison deal was stopped by the US authorities.

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