IBM has announced it has completed the acquisition of Apptio Inc. after receiving all required regulatory approvals.
The Washington-based Apptio offers a cloud-based platform that provides actionable financial and operational insights that aim to empower digital leaders to make data-driven decisions, realize value and transform the business.
The deal close brings together the solutions of Apptio’s FinOps offerings, including ApptioOne, Cloudability and Targetprocess, and IBM’s automation portfolio of Turbonomic, AIOps and Instana to provide clients with a “virtual command center” for managing, optimizing and automating technology spending decisions.
Starting immediately, clients can leverage the early integration between Apptio and IBM through their Cloudability and Turbonomic offerings. This is a key first step as IBM aims to drive significant synergy across several key growth areas, including automation, Red Hat, IBM Consulting and IBM’s broader AI portfolio.
With AI and foundation models top of mind for clients and partners, IBM will also augment its watsonx AI and data platform with Apptio’s $450bn in anonymized IT spend data to unlock innovation, insight and value.
Rob Thomas, senior vice president, software and chief commercial officer at IBM, said: “The combination of Apptio products and IBM’s IT automation portfolio will give businesses a 360-degree technology management platform they can use to optimize and automate decisions across their IT landscapes.
“We are bringing together market-leading and best-in-class solutions to continue to reshape IT from a cost center to a true competitive advantage, powered by automation and AI.”
Apptio was previously taken private by Vista Equity Partners in 2018 for $1.94bn. Thus, this deal is an acquisition valued at more than double what it was worth five years prior and is a strong reflection of the firm’s recent growth.
Robert F. Smith, founder, chairman and CEO of Vista Equity Partners, said: “Our journey with Apptio is a testament to Vista’s ability to create consistent outcomes that drive value for our stakeholders.
“We are proud of our continued momentum, even amidst these challenged market conditions, and look forward to seeing how Apptio’s technology will bolster IBM’s IT automation and AI capabilities in the years ahead. It’s been an honor to partner with a visionary founder like Sunny and we wish the entire Apptio team the best in the next phase of their growth with IBM.”
Additional reporting by Yoana Cholteeva
