IBM said it would buy HashiCorp, a cloud software maker that’s growing at a faster pace. IBM reported its third revenue miss in five quarters.
The software, hardware and consulting company is acquiring cloud software maker HashiCorp for $35 per share in cash in a deal with an enterprise value of $6.4 billion.shares dipped about 2% in extended trading on Wednesday after the hardware, software and consulting provider said it would acquire cloud software maker HashiCorp and reported first-quarter revenue that was lower than analysts had predicted.
In a statement, IBM announced that it intends to pay $35 per share in cash for HashiCorp in a deal with a $6.4 billion enterprise value, net of cash. On Tuesday, The Wall Street JournalThe deal would be accretive to adjusted earnings before interest, taxes, depreciation and amortization in the first full year after close, and accretive to free cash flow in the second year after close. IBM said it expects the transaction to close by the end of 2024.
IBM's consulting revenue came in at $5.19 billion, down slightly and just under the $5.20 billion StreetAccount consensus. Infrastructure revenue totaled $3.08 billion. It declined 0.7% but came in higher than the StreetAccount consensus of $2.94 billion.Notwithstanding the after-hours move, IBM shares are up about 13% so far this year, outperforming the S&P 500 index, which is up 6% over the same period.travel
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