IBM is on the Verge of Acquiring Cloud Software Provider HashiCorp, a San Francisco-based Company That Develops Software for Setting Up Infrastructures in the Cloud. HashiCorp, whose software supports hundreds of technology companies like Cisco, RedHat – a Subsidiary of IBM – and Datadog, could finalize a deal in the coming days that would value the company above its current market value of 4.9 billion US dollars.

This potential acquisition would further strengthen IBM, which is increasingly focusing on hybrid cloud and artificial intelligence businesses. Under the leadership of CEO Arvind Krishna, IBM has sharpened its strategic focus, concentrating on areas such as quantum computing and blockchain. Last June, IBM acquired the software company Apptio for approximately 5 billion US dollars to expand its automation capabilities. Later in the year, it sold the assets of the Weather Company, including the popular platform Weather.com, to the private equity firm Francisco Partners.

Although the Talks Could Still Fail, IBM's Negotiation with HashiCorp Shows it Continues to Actively Rely on Acquisitions to Diversify and Strengthen Its Portfolio. With a Market Capitalization of About 170 Billion US Dollars, This Acquisition Would Be a Relatively Small Investment for IBM, But It Comes at a Time When M&A Activities in the Technology Sector Are Rather Subdued. For Instance, Salesforce Recently Ended Talks to Acquire Informatica, as Reported by the Wall Street Journal. Thus, IBM's Move Could Also Be Seen as a Strategic Signal in an Otherwise Quiet Market Environment.