IBM expands hybrid cloud services with $6.4Bn HashiCorp acquisition
NEW YORK, UNITED STATES — Tech giant IBM has finally closed its acquisition of HashiCorp at a $35 per share valuation which makes the company worth about $6.4 billion. The acquisition is meant to enhance IBM’s hybrid cloud and artificial intelligence (AI) solutions.
“Organizations globally are looking to deploy modern, hybrid cloud-ready apps, which require automated cloud infrastructure at significant scale,” said Rob Thomas, Senior Vice President, IBM Software and Chief Commercial Officer.
“With this acquisition, IBM is committed to continuing to invest in and grow the HashiCorp capabilities, and together, with HashiCorp’s leading technology and extensive developer community, IBM’s global reach and R&D resources, our aim is to infuse HashiCorp technology in every data center.”
Product integration and future outlook
This deal is combining HashiCorp’s infrastructure automation technology with IBM’s portfolio including Red Hat and Watsonx. This is going to accelerate client innovation, security, and better cloud value.
The integration of HashiCorp with IBM is going to enhance IT automation, data protection, and consulting. For instane, the combination of Terraform and Red Hat Ansible enables a platform to define how infrastructure and applications are deployed and configured across different cloud environments.
HashiCorp is now an IBM company! 🎉
Our products — Terraform, Vault, and the rest — are joining IBM’s automation portfolio to help organizations navigate the complexity of hybrid cloud.
Get the details: https://t.co/1t92OtrcZR pic.twitter.com/kNfIjqvM0u
— HashiCorp (@HashiCorp) February 27, 2025
“HashiCorp has been helping the world’s largest enterprises succeed in hybrid and multi-cloud environments for over a decade. We’ve seen the cloud grow from its origins, and have participated first-hand in the change it has brought to the industry,” said Dave McJannet, CEO, HashiCorp.
“With IBM’s history, global scale, and customer relationships, HashiCorp can now expand our reach to help our community of customers, practitioners, and partners automate, secure, and optimize their cloud infrastructure, providing an end-to-end platform for hybrid environments.”
Improving IBM’s automation capabilities
The acquisition also marks a significant development in IBM’s strategy to lead in AI-driven IT automation, which is critical for organizations to manage their IT spending and reduce costs.
IBM’s suite also includes advanced tools for application management, IT stack observability, application resource management, and financial management—all of which are crucial for successful and cost-effective hybrid cloud management.
