According to people familiar with the situation, International Business Machines Corp. (IBM) is in talks to buy software company Apptio as part of a larger push into automation technology. One of the sources stated that the parties are discussing a price range of $4.5 billion to $5 billion. Apptio is currently owned by the private equity firm Vista Equity Partners.

Vista’s spokesperson declined to comment. IBM representatives did not respond immediately. The two parties are in advanced talks, and a deal could be reached by the weekend.

Apptio, founded in 2007, sells online services that aid in managing was founded in 2007, and sells online services that aid in the management of information technology budgets, forecasting, and analysis. According to the company’s website, the majority of Fortune 100 companies use its products.

Arvind Krishna, who took over as CEO of IBM in 2020, has continued to shake up the 112-year-old company. After acquiring Red Hat in 2019, IBM split off its Kyndryl business in 2021 and then divested the Watson Health division. He stated last month that IBM is still looking for deals, but that they will be smaller in scale than the $34 billion Red Hat acquisition.

It is unclear whether the $5 billion purchase price for Apptio includes debt.

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