As referenced on 26 June, IBM has signed a definitive agreement to buy software company Apptio from Vista Equity Partners for $4.6bn.

Recently The Wall Street Journal had reported that the two parties were in advanced negotiations and that a deal could be announced soon.

The acquisition of Apptio, which offers financial and operational IT management and optimisation (FinOps) solutions, is expected to bolster IBM’s IT automation capabilities.

The agreement follows IBM’s $34bn purchase of software company Red Hat in 2019 and its $1.5bn-plus purchase of software vendor Turbonomic in 2021.

Based in Washington, US, Apptio caters to more than 1,500 clients and works with cloud service providers such as Amazon Web Services, Microsoft Azure, Google Cloud Platform and other companies, including Salesforce, ServiceNow, Oracle and SAP

IBM CEO and chairman Arvind Krishna said: “Technology is changing business at a rate and pace we have never seen before. To capitalise on these changes, it is essential to optimize investments which drive better business value, and Apptio does just that.

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“Apptio’s offerings combined with IBM’s IT automation software and Watsonx AI platform gives clients the most comprehensive approach to optimise and manage all of their technology investments.”

The purchase of Apptio is part of IBM’s focus on hybrid cloud and AI.

IBM anticipates the acquisition to generate significant synergies across several growth areas, including automation, Red Hat, IBM Consulting, and its AI portfolio.

Apptio co-founder and CEO Sunny Gupta said: “We are so excited to be joining IBM and combining our industry-leading offerings with IBM’s global presence and strong portfolio across AIOps, automation and hybrid cloud offerings.”