International Business Machines Co. (IBM) is reportedly close to acquiring Apptio Inc., a cloud-based business software company that was taken private by Vista Equity Partners in 2019 for $1.94 billion. According to sources familiar with the negotiations, IBM is expected to purchase Apptio for over $5 billion, more than double the company’s previous purchase price. The deal could be finalized as early as this weekend.
IBM’s stock has had a challenging year, falling 8.2% since January. The company’s shares saw a 1.3% decline in the regular session and less than a 0.1% decrease after hours on Friday, following reports of the Apptio acquisition. Despite these struggles, IBM remains an important component of the Dow Jones Industrial Average, which has seen a 1.8% increase this year.
The acquisition of Apptio comes amid a trying week for IBM and fellow Dow component Intel Corp. (INTC). Shares of both companies fell significantly, with Intel’s shares dropping 9.3%. However, with this major acquisition on the horizon, IBM could be positioning itself for a comeback.