Founded in 2007, the Washington-headquartered Apptio offers cloud-based business solutions to customers and serves as spend and value management firm for financial and operational decisions across IT, multi-cloud FinOps, and portfolio development resources
US-based Apptio to be acquired by IBM. (Credit: Orrling/Wikimedia Commons)
IBM has agreed to acquire Apptio, a provider of financial and operational IT management and optimisation (FinOps) software, from Vista Equity Partners in a deal worth $4.6bn.
Founded in 2007, Apptio offers cloud-based business solutions to customers.
The technology spend and value management company helps its clients in financial and operational decisions across IT, multi-cloud FinOps, and portfolio development resources.
It claims to offer a one-stop-shop for enterprises which are seeking to streamline their IT budgeting, forecasting, and financial analyses. The company’s core offerings are ApptioOne, Apptio Cloudability, and Apptio Targetprocess, which are all delivered as software as a service (SaaS).
In early 2019, Apptio was taken private by Vista Equity Partners in a deal worth $1.94bn. The former went public in 2016.
Earlier this month, Apptio introduced new FinOps capabilities to its Cloudability product family to mitigate the complexity of managing and streamlining multi-cloud environments.
Apptio co-founder and CEO Sunny Gupta said: “Our customers are evolving to a complex digital-first, hybrid world where technology investments are distributed and decentralised but all innovation must be aligned with clear business outcomes.
“We are so excited to be joining IBM and combining our industry leading offerings with IBM’s global presence and strong portfolio across AIOps, automation and hybrid cloud offerings.”
IBM and Apptio announced a partnership in 2021 to support customers enhance hybrid cloud technology decision-making and bolster the adoption of Red Hat OpenShift and the former’s open hybrid cloud approach.
By acquiring Apptio, IBM expects to expedite the advancement of its IT automation capabilities and help enterprise leaders to provide improved business value across technology investments.
IBM CEO and chairman Arvind Krishna said: “Technology is changing business at a rate and pace we’ve never seen before. To capitalise on these changes, it is essential to optimize investments which drive better business value, and Apptio does just that.
“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.”
The deal, which is conditional on regulatory approvals and other customary conditions, is likely to close in the second half of this year.
Last month, IBM acquired cloud data security and compliance firm Polar Security in a move to support enterprises to automate cloud data protection.