Apptio had been taken private by Vista Equity Partners in 2018 for a considerably lower amount of $1.94 billion. The company specializes in providing cloud-based and hybrid business management software, making it a valuable asset for the technology giant IBM.
Image-: Reuters
In a surprising turn of events, reports have emerged that IBM is on the verge of acquiring Apptio, a software company, for a staggering $5 billion. According to reliable sources cited by the Wall Street Journal, the deal could be finalized over the weekend, although it remains uncertain whether the purchase price includes any existing debt.
Notably, Apptio had been taken private by Vista Equity Partners in 2018 for a considerably lower amount of $1.94 billion. The company specializes in providing cloud-based and hybrid business management software, making it a valuable asset for the technology giant IBM. This potential acquisition comes on the heels of IBM’s recent purchase of Turbonomic, a software provider, for over $1.5 billion in 2021. Additionally, IBM made waves in 2019 with its massive $34 billion acquisition of Red Hat, another prominent software company.
Note-: It is worth highlighting that IBM, often referred to as Big Blue, is an American multinational technology corporation with its headquarters in Armonk, New York. With a presence in more than 175 countries, IBM is renowned for its expertise in computer hardware, middleware, and software. The company also offers hosting and consulting services, covering a wide range of areas from mainframe computers to nanotechnology. Notably, IBM boasts the distinction of being the largest industrial research organization globally, with 19 research facilities spread across multiple countries. Additionally, it holds an impressive record of generating the highest number of annual U.S. patents among businesses, maintaining this achievement for an astounding 29 consecutive years, from 1993 to 2021. Currently, IBM ranks as the seventh largest technology company in terms of revenue and the 49th largest overall, according to the 2022 Fortune 500. Furthermore, it consistently ranks among the most recognizable, valuable, and admired brands worldwide.
Note-: As for Apptio, the company, founded in 2007 and headquartered in Bellevue, Washington, specializes in developing technology business management (TBM) software as a service (SaaS) applications. Apptio’s enterprise apps are primarily designed to assess and communicate the cost of IT services, enabling effective planning, budgeting, and forecasting. Their services encompass a wide range of tools for Chief Information Officers (CIOs) to manage various aspects of technology departments, including storage, applications, energy usage, cybersecurity, and reporting obligations. Moreover, Apptio assists in managing the costs associated with public cloud services, migration to the public cloud, and SaaS portfolios. Furthermore, they support the adoption and scalability of Agile methodologies across the enterprise.
In conclusion, the reported acquisition of Apptio by IBM for $5 billion signifies a significant move within the software industry. With IBM’s impressive track record of acquisitions, this deal demonstrates their ongoing commitment to expanding their offerings and strengthening their position in the market. As the details unfold, the industry eagerly awaits confirmation and further information regarding this potentially game-changing transaction.
Ayush Singh.
