HashiCorp on Nasdaq Market Site, December 9, 2021.
Source: Nasdaq
Hashicorp shares rose as much as 26% on Tuesday after media reports that IBM was in talks to buy the cloud software maker.
Developers use HashiCorp’s software to set up and manage infrastructure in public clouds operated by companies like Amazon and Microsoft. The organization also pays HashiCorp to manage its security credentials.
The Wall Street Journal, citing anonymous sources, reported that a deal could be reached within days.
Representatives for HashiCorp and IBM both told CNBC that they do not comment on market rumors or speculation.
HashiCorp was founded in 2012 and listed on Nasdaq in 2021. The company had a net loss of nearly $191 million on revenue of $583 million in the fiscal year ended Jan. 31, according to its report. annual report. In December, Mitchell Hashimoto, co-founder of Hashicorp, whose family name is reflected in the company name, announced That he is about to leave.
Revenue for the period increased approximately 23% compared to IBM’s 2% increase in 2023. IBM executives cited tough economic conditions on a conference call with analysts in January. The hardware, software and consulting provider will report earnings on Wednesday.
According to one source, Cisco held $9 million in HashiCorp stock at the end of March. Regulatory filing.
IBM’s stock price fell after the article was published, but quickly recovered.
