International Business Machines Corporation (NYSE:IBM) is reportedly on the verge of acquiring cloud software provider HashiCorp Inc (NYSE:HCP), signaling potential growth for both entities.
An acquisition of HashiCorp would likely entail a premium above its current stock value, reported The Wall Street Journal.
Citing sources familiar with the matter, the report suggested that a deal for HashiCorp is likely to materialize soon, although there's a possibility it may not proceed.
HashiCorp, headquartered in San Francisco, specializes in cloud infrastructure setup, boasting partnerships with numerous tech giants, including Cisco Systems Inc (NASDAQ:CSCO), RedHat (owned by IBM), and Datadog Inc (NASDAQ:DDOG).
As per the report, IBM is undergoing a strategic shift towards hybrid-cloud and artificial-intelligence domains under the leadership of CEO Arvind Krishna.
The company's recent endeavors include ventures into quantum computing and blockchain technologies, evident from its $5 billion acquisition of software firm Apptio last year, enhancing its automation capabilities.
Recent reports indicate Salesforce Inc's (NYSE:CRM) withdrawal from negotiations to acquire Informatica Inc (NYSE:INFA), signaling a cautious approach in the sector.
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Price Action: HCP closed higher by 18.7% at $29.15 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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