International Business Machines (IBM) is in advanced talks to buy cloud software provider HashiCorp, Reuters news report said.
Hashicorp has a market value of $6.1 billion.
IBM, under CEO Arvind Krishna, has focused on acquisitions to build out its cloud offerings. The boom in generative artificial intelligence has increased the attractiveness of cloud software as it helps process vast amounts of data.
California-based HashiCorp enables enterprise customers to establish and manage their infrastructures on the cloud. The company’s annual revenue rose 22.5 percent to $583.1 million for the year ended Jan. 31.
IBM completed nine acquisitions in 2023, including a deal for technology spend-management platform Apptio from Vista Equity Partners for $4.6 billion.
The company’s 2018 acquisition of software company Red Hat for $34 billion, including debt, remains its biggest buyout till date.
