IBM to acquire cloud software corporation Apptio

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American multinational technology corporation International Business Machines Corporation (IBM) is set to acquire cloud software company Apptio from Vista Equity Partners for US$4.6 billion, according to IBM in a statement. The transaction expected to close in the second half of 2023.

The acquisition of Apptio will expedite the development of IBM’s IT automation abilities and allow enterprise leaders to execute enhanced business value across technology investments, it said.

Through the acquisition, Apptio, together with IBM's IT automation software and its watsonx AI platform, will also help businesses around the world manage and optimise enterprise IT spend and derive tangible financial value and operational improvement.

Additionally, Apptio and the performance optimisation and observability abilities of IBM’s IT automation software such as Turbonoic, Instana and AIOps will provide clients with a full-circle technology business management platform for spend management and optimisation that covers their entire technology aspect.

"Our customers are evolving to a complex digital-first, hybrid world where technology investments are distributed and decentralized but all innovation must be aligned with clear business outcomes," said Sunny Gupta, Apptio co-founder and CEO.

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“Technology is changing business at a rate and pace we’ve never seen before. To capitalise on these changes, it is essential to optimise investments which drive better business value, and Apptio does just that,” said Arvind Krishna, chief executive officer and chairman of IBM.

“Apptio’s offerings combined with IBM’s IT automation software and watsonx AI platform, gives clients the most comprehensive approach to optimise and manage all of their technology investments,” added Krishna.

Apptio is an established cloud software corporations and has valuable experience from working with over 1,500 clients and serving more than half of the Fortune 100. Some of Apptio's clients include Amazon Web Services, Microsoft Azure and Google Clout Platform.

The acquisition of Apptio is an extension of IBM’s concentrated focus in hybrid cloud and AI. The acquisition is expected to spur growth for IBM, which includes automation, IBM’s broader AI portfolio along with strong partnerships with other leading systems integrators like Accenture, KPMG and Deloitte. Apptio is projected to work with clients and partners from over 175 countries.

The news of the acquisition comes just as Fortress Investment Group acquired Vice Media out of bankruptcy. The acquisition includes three investment companies including Fortress Investment Group, Soros Fund Management and Monroe Capital for US $350 million, according to CNN.

Vice Media’s co-chief executives Hozefa Lokhandwala and Bruce Dixon informed Vice employees of its decision in an email sent on Thursday that was seen by The New York Times.

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