April 24 (Reuters): Selecting a new tab, IBM.N, or International Business Machines, will buy In order to capitalize on an increase in demand driven by artificial intelligence, HashiCorp (HCP.O) announced on Wednesday that it has opened a new tab in a $6.4 billion deal, expanding its cloud-based software offerings.
IBM’s consulting business has seen success with software as businesses navigate rising loan rates and more frugal expenditures.
For $35 per share, or 42.6% more than Monday’s closing price, IBM intends to purchase HashiCorp. Shares of HashiCorp surged sharply after information about the deal talks was made public on Tuesday.
In extended trading on Wednesday, HashiCorp’s shares increased by more than 4%, while IBM’s sank by 7% after the latter company’s first-quarter revenue report came in slightly lower than expected.
Compared to LSEG expectations of $14.55 billion, the total revenue was $14.46 billion. Sales in the consulting segment were flat throughout the quarter.
“In this erratic macroeconomic climate, you’re seeing clients. “You are seeing clients that are tightening their discretionary spending,” CFO Jim Kavanaugh said to Reuters.
Accenture (ACN.N), opens new tab, said in March that a decline in client spending on its consulting services would cause it to lower its revenue forecast for the fiscal year 2024.
IBM’s software business grew by 5.5% in the first quarter. The business has focused more on the cloud as it becomes increasingly crucial to manage and store the massive amounts of data required in artificial intelligence systems.
The Big Blue’s “AI book of business” exceeded $1 billion in the first quarter thanks to its sequential growth. The book contains actual reservations and sales data from a variety of offerings.
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