IBM's $4.6 billion acquisition of Apptio is expected to close in the second half of 2023. The company laid off 3,900 employees earlier this year and first-quarter revenue increased just 1% year-over-year.
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| IBM wants to strengthen its cloud and automation capabilities. |
Apptio is a cloud-based spend management platform that offers features like IT budgeting, forecasting, and financial analytics, and was founded in 2007. In 2018, Apptio's revenue reached $233 million and is expected to grow 11-13% annually.
The acquisition of Apptio – a SaaS company with more than 1,500 customers and partnerships with giants like AWS and Salesforce – will benefit IBM’s Red Hat division, AI portfolio and consulting division.
IBM, a century-old company, is reorienting itself to focus on AI and cloud-based services. In 2019, it acquired software vendor Red Hat for $34 billion. Two years later, it spun off its data center and IT infrastructure division Kyndryl Holdings. In 2022, it sold some of its health data and analytics assets.
Before being sold to IBM, Apptio was owned by Vista Equity Partners, which spent $1.94 billion to take Apptio private in 2018.
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