IBM to buy HashiCorp in $6.4 billion deal to expand in cloud

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.

Software has been a bright spot for IBM as its consulting business grapples with more cautious spending by enterprises navigating higher interest rates.

IBM will pay $35 per share for HashiCorp, a 42.6% premium to Monday’s closing price. HashiCorp’s shares had surged on Tuesday following media reports of the deal talks.