IBM to Acquire Apptio for $4.6 Billion, Enhancing IT Automation Capabilities.
June 26, 2023: The technology giant IBM has announced a definitive agreement to acquire Apptio for $4.6 billion from Vista Equity Partners. Apptio, based in Washington, provides software for financial and operational IT management and optimization.
The acquisition aims to strengthen IBM’s IT automation capabilities. By combining Apptio’s expertise with IBM’s IT automation software and Watsonx AI platform, businesses can optimize their IT spending and achieve tangible financial value and operational improvements.
IBM plans to fund the acquisition with its available cash. The transaction is subject to regulatory approvals and customary closing conditions and is expected to be completed in the latter half of 2023.
Apptio was listed on NASDAQ in 2016 but was later delisted and acquired by Vista Equity Partner in 2019 for $1.94 billion. The company was founded in 2007 by Sunny Gupta and Kurt Shintaffer.
Arvind Krishna, CEO and Chairman of IBM highlighted the importance of optimizing investments to capitalize on the rapid changes technology brings. He stated that Apptio’s offerings, combined with IBM’s IT automation software and Watsonx AI platform, will provide clients with a comprehensive approach to optimizing and managing their technology investments.
Apptio is a profitable tech business management solution, serving over 1,500 clients, including over half of the Fortune 100 companies. In addition to its IT spend optimization capabilities, the acquisition will bring $450 billion of anonymized IT spend data to IBM, unlocking new insights for clients and partners.
Sunny Gupta, co-founder and CEO of Apptio expressed excitement about joining IBM and leveraging the company’s global presence and robust portfolio in AIOps, automation, and hybrid cloud offerings.
This deal follows IBM’s previous acquisitions, such as its purchase of software provider Turbonomic in 2021 for over $1.5 billion and its acquisition of software company Red Hat in 2019 for $34 billion.