IBM announced it has entered into a definitive agreement with Vista Equity Partners to purchase Apptio Inc., a leader in financial and operational IT management and optimization (FinOps) software, accelerating the advancement of IBM's IT automation capabilities and enable enterprise leaders to deliver enhanced business value across technology investments.
The acquisition is for $4.6 billion and Apptio will be acquired with available cash on hand. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the latter half of 2023.
Apptio, together with IBM's IT automation software and it's watsonx AI platform, will help businesses around the world manage and optimize enterprise IT spend and derive tangible financial value and operational improvement.
"Technology is changing business at a rate and pace we've never seen before. To capitalize on these changes, it is essential to optimize investments which drive better business value, and Apptio does just that," said Arvind Krishna, CEO and chairman, IBM. "Apptio's offerings combined with IBM's IT automation software and watsonx AI platform, gives clients the most comprehensive approach to optimize and manage all of their technology investments."
Apptio is an established, growing, and profitable technology business management and FinOps leader, with over 1,500 clients, serving more than half of the Fortune 100.
Industry recognized, Apptio partners and integrates with leading companies such as Amazon Web Services, Microsoft Azure, Google Cloud Platform, Salesforce, ServiceNow, Oracle and SAP, consistent with IBM's commitment to an open partner ecosystem.
Apptio and the performance optimization and observability capabilities of IBM's IT automation software like Turbonomic, Instana and AIOps, will give clients a 360-degree technology business management platform, providing a "virtual command center" for spend management and optimization stretching across their entire technology landscape.
Apptio empowers enterprise leaders to manage technology spend and direct investments to high-value cloud innovation and digital transformation. The company has three core offerings, all delivered as software as a service (SaaS) – ApptioOne, Apptio Cloudability, and Apptio Targetprocess:
- ApptioOne: Hybrid cloud spend management and optimization capabilities to analyze, optimize and plan IT spend and value. ApptioOne is used to establish repeatable and accurate planning and financial management processes, delivering actionable insights around cost and utilization, while benchmarking against industry peers for continuous optimization.
- Apptio Cloudability: Public cloud spend management visibility and optimization capabilities, connecting multi-cloud and SaaS infrastructure with cloud financial management best practices to maximize the value of clients' cloud strategy.
- Apptio Targetprocess: Agile investment planning capabilities to align development resources to business outcomes, plan and track value delivery for projects or products.
According to IBM, the acquisition of Apptio is a continuation of IBM's deep focus and investment in hybrid cloud and AI and is expected to drive significant synergies across several key growth areas for IBM, including automation, Red Hat, IBM's broader AI portfolio, and IBM Consulting, as well as strong partnership with other leading systems integrators like Accenture, KPMG, Deloitte and EY.
IBM will also deliver new innovation by augmenting watsonx with Apptio's anonymized FinOps data. Additionally, Apptio is expected to benefit from IBM's long-established scale and reach, working with clients and partners across more than 175 countries.
For more information about this news, visit www.ibm.com.