IBM CEO and Chairman Arvind Krishna recently reflected on the benefits businesses will obtain as the result of its acquisition of management software company Apptio from investment firm Vista Equity Partner.
“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,” Krishna said, according to MoneyControl News.
MoneyControl News reported IBM made an announcement on June 26 regarding its agreement with Vista Equity Partners to acquire Apptio for a substantial amount of $4.6 billion. Apptio, headquartered in Washington, specializes in providing software for financial and operational IT management and optimization. The strategic acquisition is intended to strengthen IBM's IT automation capabilities, further enhancing its technological offerings.
“Technology is changing businesses at a rate and pace we've never seen before,” Krishna said, according to MoneyControl News. “To capitalise on these changes, it is essential to optimise investments, which drive better business value, and Apptio does just that.”
In the MoneyControl News article, IBM explained the transaction is expected to close during the latter half of 2023 following regulatory approvals and customary closing conditions. The Apptio acquisition joins IBM’s prior purchases of software provider Turbonomic in 2021 and software company Red Hat in 2019.
According to MoneyControl News, co-founder and CEO of Apptio Sunny Gupta said, "We are 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."
Founded in 2007 by Sunny Gupta and Kurt Shintaffer, MoneyControl News states Apptio went public on NASDAQ in 2016 before being acquired by Vista Equity Partners in 2019 for $1.94 billion. Apptio offers IT optimization capabilities and brings with it an asset of $450 billion in anonymized IT spend data. Its more than 1,500 clients includes Fortune 100 companies.