IBM Bolsters Hybrid-Cloud Business With $6.4B HashiCorp Acquisition

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Terraform,Hashicorp,Acquisition

Steve McDowell is chief analyst at NAND Research. Steve is a technologist with over 25 years of deep industry experience in a variety of strategy, engineering, and strategic marketing roles, all with the unifying theme of delivering innovative technologies into the enterprise infrastructure market.

its intention to acquire HashiCorp, a multi-cloud infrastructure automation company, for $35 per share in cash, with an enterprise value of $6.4 billion.

Its offerings include the popular Terraform for infrastructure automation, Vault for secrets management, Consul for service discovery and networking, and Vagrant for development environments. These tools streamline deploying and managing infrastructure in multi-cloud and hybrid cloud environments, facilitating DevOps practices and enhancing collaboration.

The company reported a 15% increase in revenue to $155.8 million, resulting in an annual revenue of $583.1 million, a 23% year-over-year uplift. Gross profit remained high, with GAAP at $128.8 million and non-GAAP at $133.5 million, maintaining margins of 83% and 86%, respectively. HashiCorp also improved its operating loss, which dropped to $48.3 million and $6.5 million, while its net loss decreased to $31.6 million and turned positive to $10.2 million.

Most critically, HashiCorp's multi-cloud capabilities complement IBM's hybrid cloud strategy. The flexibility of HashiCorp's tools across multiple cloud providers helps IBM support customers in multi-cloud environments, aligning with the growing trend toward hybrid cloud solutions. IBM's extensive customer base offers significant cross-selling opportunities with HashiCorp's products, creating synergies with existing IBM services.

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