In a recent announcement on June 26, IBM, a prominent technology giant, revealed its definitive agreement with Vista Equity Partners to acquire Apptio for $4.6 billion. Apptio, headquartered in Washington, specializes in financial and operational IT management software, and this strategic acquisition aims to enhance IBM’s IT automation capabilities. By combining Apptio’s expertise with IBM’s IT automation software and Watsonx AI platform, businesses will be empowered to optimize their IT expenditure and realize tangible financial and operational improvements.
IBM plans to fund the acquisition using its available cash reserves. The completion of the transaction is subject to regulatory approvals and customary closing conditions, and it is expected to conclude in the latter half of 2023, as stated by IBM.
Apptio, initially listed on NASDAQ in 2016 before being acquired by Vista Equity Partners in 2019 for $1.94 billion, was established in 2007 by Sunny Gupta and Kurt Shintaffer. With over 1,500 clients, including more than half of the Fortune 100 companies, Apptio brings not only its IT spend optimization capabilities but also $450 billion worth of anonymized IT spend data, unlocking valuable insights for clients and partners.
Arvind Krishna, CEO and Chairman of IBM, expressed the significance of adapting to the rapid changes brought by technology and the importance of optimizing investments to drive better business value. He emphasized that Apptio’s offerings, combined with IBM’s IT automation software and Watsonx AI platform, provide clients with a comprehensive approach to manage and optimize their technology investments.
Sunny Gupta, co-founder and CEO of Apptio, shared his excitement about joining IBM and leveraging their global presence and extensive portfolio across AIOps, automation, and hybrid cloud offerings. This acquisition follows IBM’s previous deals, such as the acquisition of software provider Turbonomic for over $1.5 billion in 2021 and the acquisition of software company Red Hat for $34 billion in 2019.