Tech Giant IBM To Acquire Apptio For $4.6 Billion By CIOTechOutlook Team

Tech Giant IBM To Acquire Apptio For $4.6 Billion

CIOTechOutlook Team | Tuesday, 27 June 2023, 02:48 IST

IBM, one of the top suppliers of global hybrid cloud, AI, and consulting skills, announced a deal to buy Apptio Inc. for $4.6 billion. This acquisition is anticipated to hasten the development of IBM's IT automation capabilities and give business executives the ability to maximise the return on their technological expenditures.

The focus will be on the price of IBM's stock. In pre-market trading, IBM fell 0.6% to $128.68 per share.

Apptio will likely be purchased by IBM using available cash. The transaction is still pending regulatory clearances and other usual closing requirements, but it is anticipated to close in the second half of 2023.

Apptio, combined with IBM's Watsonx AI platform and IT automation software, is anticipated to give companies all over the world the ability to manage and optimise enterprise IT spend and generate real financial value and operational improvement.

Additionally, clients will have access to a 360-degree technology business management platform through Apptio and the performance optimisation and observability features of IBM's IT automation software like Turbonomic, Instana, and AIOps. This platform will serve as a "virtual command centre" for spend management and optimisation across the client's entire technology landscape.

Further, $450 billion in anonymised IT spend data from Apptio will be added to IBM, providing additional insights for clients and partners.

Arvind Krishna, CEO and chairman, of IBM, said, "Apptio's offerings combined with IBM's IT automation software and watsonx AI platform, gives clients the most comprehensive approach to optimize and manage all of their technology investments."

With over 1,500 clients and supporting more than half of the Fortune 100, Apptio is a well-known, profitable leader in technology business management and finOps.