HashiCorp Reportedly Being Acquired By IBM [UPDATE]

According to the Wall Street Journal, a deal for IBM to acquire HashiCorp could materialize in the next few days. Shares of HashiCorp jumped almost 20% on the news.

UPDATE 4/24/24: IBM has confirmed the deal valued at $6.4 billion. “IBM will pay $35 per share for HashiCorp, a 42.6% premium to Monday’s closing price,” reports Reuters. “The acquisition will be funded by cash on hand and will add to adjusted core profit within the first full year of closing, expected by the end of 2024.” HashiCorp’s shares continued to surge Tuesday on the news. CNBC reports: Developers use HashiCorp’s software to set up and manage infrastructure in public clouds that companies such as Amazon
and Microsoft operate. Organizations also pay HashiCorp for managing security credentials. Founded in 2012, HashiCorp went public on Nasdaq in 2021. The company generated a net loss of nearly $191 million on $583 million in revenue in the fiscal year ending Jan. 31, according to its annual report. In December, Mitchell Hashimoto, co-founder of HashiCorp, whose family name is reflected in the company name, announced that he was leaving.

Revenue jumped almost 23% during that period, compared with 2% for IBM in 2023. IBM executives pointed to a difficult economic climate during a conference call with analysts in January. The hardware, software and consulting provider reports earnings on Wednesday. Cisco held $9 million in HashiCorp shares at the end of March, according to a regulatory filing. Cisco held early acquisition talks with HashiCorp, according to a 2019 report.

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