IBM is reportedly close to finalizing a deal to purchase HashiCorp, a provider of cloud infrastructure software, with negotiations potentially concluding within the next few days. This information comes after the Wall Street Journal revealed ongoing discussions between the two companies, which subsequently led to a 24% increase in HashiCorp’s stock price, pushing the company’s market valuation to $6.1 billion.

Under the leadership of CEO Arvind Krishna, IBM has been actively expanding its cloud services portfolio, spurred by the rising demand for cloud software driven by advancements in generative artificial intelligence technologies. HashiCorp, headquartered in California, specializes in helping users develop and manage their cloud-based systems. The company reported a significant 22.5% growth in annual sales to $583.1 million for the fiscal year ending January 31, surpassing analysts’ forecasts.

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While a deal could be announced shortly, sources indicate that there remains a possibility that the talks might not result in an agreement. If successful, this acquisition would add to IBM’s list of nine acquisitions in 2023, including a notable $4.6 billion purchase of Apptio. The proposed acquisition of HashiCorp follows IBM’s largest deal to date, the $34 billion purchase of Red Hat in 2018.

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