International Business Machines Co. (NYSE: IBM) is nearing a deal for the acquisition of Apptio Inc., a cloud-based business software company, for about $5 billion, the deal between the companies could be completed over the weekend.PHOTO BY MATEUSZ SLODKOWSKI/GETTY IMAGES
International Business Machines Co. (NYSE: IBM) is nearing a deal for the acquisition of Apptio Inc., a cloud-based business software company, for about $5 billion, the Wall Street Journal reported.
Apptio, taken private by Vista Equity Partners in 2019 for about $2 billion, could be a possible asset for technology giant IBM as the former is considered a big player in helping companies manage their spending on technology. Another Vista-backed software company Cvent was sold in July to private equity giant Blackstone for $4.6 billion.
The sale of Apptio would represent a rare private-equity exit as dealmaking across the U.S. plummeted about 40% compared with the same period in 2022. The deal follows IBM’s purchase of software provider Turbonomic for over $1.5 billion and its 2019 acquisition of software company Red Hat for $35 billion, according to the Wall Street Journal.
The company IBM is also exploring a sale of its weather operation, which includes The Weather Company’s business-to-business, mobile and cloud-based businesses, including Weather.com. The deal could fetch IBM more than $1 billion in a sale. In April, IBM reported first-quarter revenue of $14.25 billion. The company said it focused on increasing productivity and generating operating leverage in the quarter. Free cash flow from operating activities totaled $3.8 billion. Free cash flow came in at $1.3 billion.
Produced in association with Benzinga
Edited by Asad Ali and Saba Fatima
Get news, handpicked just for you, in your box.
