American tech giant IBM has signed a definitive agreement to sell its The Weather Company assets to technology-focused investment firm Francisco Partners.
The companies did not disclose the financial details and specific terms of this transaction.
As part of this transaction, Francisco Partners will acquire the digital consumer-facing offerings of The Weather Company along with The Weather Channel cloud- and mobile-based digital properties, which include Weather Underground, Weather.com and Storm Radar.
The investment firm will also acquire The Weather Company’s forecasting science and technology platform and IBM’s enterprise offerings for advertising technology, broadcast, aviation, media as well as specific data solutions for other industries.
Post acquisition, IBM will continue to retain the sustainability software business, which includes Environmental Intelligence Suite, which allows clients to curate, measure, report and operationalise environmental, social, and governance data.
Francisco Partners partner Alan Ni said: “Amid the growing volatility of weather, The Weather Company’s unique set of consumer, media, and industry-specific products provide mission critical, data-driven weather insights to individuals and businesses around the world.”
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The Weather Company specialises in providing highly accurate weather data to businesses and consumers.
The company now seeks to utilise investment and resources from Francisco Partners to further expand beyond forecasting alone, by adding new experiences, more actionable insights and tools for the customers to help them in understanding the impact of weather on their lives.
IBM senior vice president, software and chief commercial officer Rob Thomas said: “We are proud of what The Weather Company team has accomplished with IBM, and we are confident that the best path forward is as a standalone company benefiting from Francisco Partners’ expanded investment, dedication and expertise.”
The deal is now subject to completion of certain local labour processes, regulatory approvals and other customary closing conditions.
It is expected to complete by the end of the first quarter of 2024.