IBM said Thursday it has agreed to acquire Turbonomic, a software provider that helps companies monitor the performance of their business applications, the latest in a series of cloud computing acquisitions from the technology giant.
The deal estimates Turbonomic between $ 1.5 billion (approximately 11,100 rupees) and 2 billion dollars (approximately 14,800 rupees), insiders said on condition of anonymity. The deal, which confirmed an earlier Reuters report, will be At IBM the largest since acquired Red Hat for $ 34 billion (approximately 2.51,650 kroner) in 2019.
Shares of IBM rose slightly in early afternoon trading.
The acquisition is IBM’s 11th since Arvind Krishna became chief executive last year. Krishna is undergoing a major transformation, doubling hybrid clouds and artificial intelligence areas.
“Turbonomics is the next part of our automation strategy,” said Rob Thomas, SVP of IBM Cloud and Data Platform. “We can bring proliferation an advantage plus integrate it into our artificial intelligence strategy.
IBM plans to integrate Turbonomic application resource management software with Instana and other recent acquisitions, as well as partner with Cisco after the transaction.
The Boston-based Turbonomic provides companies with software to increase real-time productivity and compliance of their applications. It last raised $ 70 million (approximately Rs. 520 crore) from Trend Forward Capital and Highland Capital Partners at an estimate of $ 963 million (approximately 7130 kroner) in September 2019, according to PitchBook Data. Other supporters of the company include Bain Capital Ventures and Cisco.
Turbonomic previously partnered with IBM, including an original equipment manufacturer (OEM) agreement in May 2020.
Turbonomic reports 41% revenue growth for fiscal year 2021 as it takes advantage of customers to accelerate the transformation of their applications in the public cloud coronavirus pandemic.
The deal is expected to close in the second quarter of 2021.
© Thomson Reuters 2021