IBM Completes $6.4 Billion Acquisition of HashiCorp to Strengthen Hybrid Cloud and AI Automation

28 February 2025 | Friday | News

The integration of HashiCorp’s cloud infrastructure automation solutions with IBM’s hybrid cloud and AI ecosystem accelerates innovation, enhances security, and optimizes enterprise cloud management at scale.

IBM announced the completion of its acquisition of HashiCorp , a leader in cloud infrastructure automation and security. The acquisition, valued at $6.4 billion, reinforces IBM’s commitment to helping enterprises accelerate innovation, optimize cloud management, and enhance security in an increasingly AI-driven landscape. HashiCorp will now operate as "HashiCorp, an IBM Company," continuing to serve its global developer community while benefiting from IBM’s resources, scale, and enterprise expertise.

With nearly 75% of enterprises utilizing hybrid cloud—spanning hyperscale public clouds and on-premises data centers—there is a growing demand for infrastructure automation to manage cloud security and scalability. By 2028, generative AI is projected to drive the creation of 1 billion new cloud-native applications, making automated cloud infrastructure essential. The combination of IBM’s global reach and HashiCorp’s industry-leading automation portfolio, including Terraform and Vault, positions the companies to address this growing need.

Enhancing Enterprise Cloud and AI Automation

The integration of HashiCorp’s products with IBM’s hybrid cloud and AI ecosystem will offer enterprises:

  • Automated Cloud Lifecycle Management – Streamlining multi-cloud environments with Terraform for infrastructure provisioning and Vault for secrets management.
  • AI-Driven IT Optimization – Leveraging HashiCorp’s automation with Red Hat Ansible Automation Platform and IBM watsonx AI for enhanced IT performance.
  • Expanded Security Capabilities – Strengthening multi-cloud security and compliance for hybrid enterprises.

“Organizations globally are looking to deploy modern, hybrid cloud-ready apps, which require automated cloud infrastructure at significant scale,” said Rob Thomas, Senior Vice President, IBM Software and Chief Commercial Officer. “With this acquisition, IBM is committed to growing HashiCorp’s capabilities and infusing its technology into hybrid cloud and AI-driven automation solutions.”

“HashiCorp has been helping the world's largest enterprises succeed in hybrid and multi-cloud environments for over a decade,” said Dave McJannet, CEO of HashiCorp. “With IBM’s history, scale, and customer relationships, we can now expand our reach and further empower organizations with automation, security, and AI-ready infrastructure.”

Driving Synergies Across IBM’s Portfolio

HashiCorp will complement IBM’s existing hybrid cloud and AI strategy, enabling:

  • Integration with Red Hat OpenShift and Ansible Automation to simplify infrastructure deployment.
  • Enhanced security and compliance solutions across IBM’s hybrid cloud services.
  • Accelerated IT automation for enterprises, reducing operational costs and improving cloud performance.

With HashiCorp now part of IBM, enterprises can expect a powerful end-to-end platform for managing hybrid cloud infrastructure, unlocking new opportunities in AI-driven cloud security and automation.

The acquisition closed at $35 per share in cash, representing an enterprise value of $6.4 billion.

 
 

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