The deal demonstrates IBM’s increased focus on software as its consulting business has been hit by decreasing enterprise spending.

When the deal closes, IBM will further extend its Red Hat subsidiary's cloud automation tool set, strengthening its play in the infrastructure-as-code sector.

HashiCorp's automation technology will fit into IBM’s Red Hat, watsonx, data security, IT automation and consulting businesses.

HashiCorp has a proven track record of enabling clients to manage the complexity of today’s infrastructure and application sprawl,’ says IBM CEO Arvind Krishna in a statement Wednesday.

IBM announced today plans to buy HashiCorp, a leading multi-cloud infrastructure automation company. The companies have entered into a definitive agreement under which IBM will acquire HashiCorp for $35 per share in cash, representing an enterprise value of $6.4 billion.

(Reuters) -International Business Machines will buy HashiCorp in a deal valued at $6.4 billion, the company said on Wednesday, expanding its cloud-based software products to tap into an AI-powered boom in demand.

International Business Machines will buy HashiCorp in a deal valued at $6.4 billion, the company said on Wednesday, expanding its cloud-based software products to tap into an AI-powered boom in demand.

IBM will acquire San Francisco-based HashiCorp for $6.4 billion, IBM announced during its Q1 earning call on April 24. The deal is expected to close by the end of 2024. The acquisition is part of an effort to broaden IBM’s hybrid cloud,

Its second-largest acquisition to date is geared at helping businesses manage multiple cloud platforms, and capturing the Silicon Valley company’s developer following.