IBM Buying Vista Equity Partners’ Apptio for $4.6 Billion
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IBM Buying Vista Equity Partners’ Apptio for $4.6 Billion
Amid the increasing use of cloud architecture, technology corporation IBM (NYSE: IBM) said it would acquire software company Apptio from Vista Equity Partners. According to a press release, IBM is purchasing Apptio SaaS solutions which help organizations to plan, analyze, optimize, control, and collaborate with other investments as they make smart decisions, after entering into a definitive agreement with Vista Equity Partners. Per the deal, the technology corporation will buy the software for $4.6 billion.
As a leader in financial and operational IT management and optimization (FinOps), Apptio will help IBM accelerate its application management, optimization, and observability offerings. Also, enterprise leaders can deliver enhanced business value across technology investments. As a fast-growing technology business management and FinOps leader, Apptio offers services to over half of the Fortune 100. The company boasts more than 1,500 clients. Some of its partners include Salesforce (NYSE: CRM), Amazon Web Services (AWS), Oracle, Google Cloud Platform, and more.
IBM Announces Plans to Buy Apptio
The news from IBM on its plans to acquire Apptio came at a time organizations are digitally transforming their business operations faster than before. Since the coronavirus outbreak, companies have adopted IT tools to expand across clouds. Hence, many turned to Apptio solutions to integrate into technology. As IBM acquires the software, it will help businesses manage and optimize enterprise IT spending and derive tangible financial value and operational improvement.
The CEO and chairman of IBM, Arvind Krishna, commented on the latest development with Apptio, saying:
“Technology is changing business at a rate and pace we’ve never seen before. To capitalize on these changes, it is essential to optimize investments which drive better business value, and Apptio does just that. 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.”
The combination of the companies’ automation software will provide a full technology platform for businesses. The combined capabilities will result in a “virtual command center”, useful across the client’s technology landscape. Furthermore, Apptio is bringing $450 billion of anonymous IT spend data to IBM.
IBM’s announcement to purchase Apptio for billions of dollars reflects its continued efforts and investments toward a hybrid cloud. The software is also positioned to benefit from the technology company’s extensive client base across over 175 countries.
Expressing his excitement Apptio co-founder, and CEO Sunny Gupta stated:
“We are so excited to be joining IBM and combining our industry leading offerings with IBM’s global presence and strong portfolio across AIOps, automation and hybrid cloud offerings.”
While IBM will buy Apptio with Cash on hand, the transaction is still subject to regulatory approvals. Nevertheless, the companies expect to close the deal before the end of the year.