IBM this negotiating the purchase of European software development company Apptio, an operation that apparently is quite close to materializing and that would be part of the company’s plans to advance automation technology, according to the Wall Street Journal. According to several sources, the price that IBM will pay for Apptio, if the purchase is finally formalized, will be around 5,000 million dollars.
Apptio is currently owned by the private investment group Vista Equity Partners, which bought it in 2019, and who is negotiating the operation with IBM. Since becoming part of the Vista portfolio, Apptio has been supported to grow through various acquisitions, including multicloud financial management company Cloudability.
Negotiations are well advanced, and the purchase agreement could be closed in a matter of a few days. Although for now, neither of the two parties have wanted to make statements in this regard. It is also not known whether or not the price IBM would pay for Apptio would include debt.
IBM and Apptio are not completely unrelated, since they have been related for a long time. In the past they have already collaborated on several occasions to make it easier for the clients of both companies to make decisions using data.
Founded in 2007, Apptio is responsible for the development and sale of online services designed to facilitate the management of budgets, forecasts and analysis of information technologies. It is considered one of the main players in charge of helping companies manage what they invest and spend in technology, an area that IBM finds very interesting for growth. His clients include most of the companies that are part of the Fortune 100 list.
In view of the negotiations, IBM remains immersed in its purchasing plans to continue growing after creating an external company, Kyndryl, with a part of its business, in 2021. Also outsourcing its Watson Health division. Yes, as stated its CEO, Arvind Krishnathe purchases they are going to make at IBM from now on are not going to be as expensive as the purchase of Red Hat, in which they invested 34,000 million dollars.
