The UK’s Competition and Markets Authority (CMA) has initiated an investigation into IBM’s planned acquisition of cloud software vendor HashiCorp, valued at $6.4bn.
The CMA is assessing whether the merger could “result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
It has invited feedback from interested parties to aid its assessment of the transaction.
Interested parties have until 16 January to submit comments, with a provisional decision expected by 25 February.
IBM announced the acquisition in April, offering $35 per share in cash for HashiCorp.
The acquisition aims to expand IBM’s cloud-based software offerings amid rising demand for artificial intelligence (AI).
IBM highlighted the challenges posed by cloud-native workloads and generative AI deployment, which require complex infrastructure strategies.
US company HashiCorp provides tools for businesses to build and manage cloud infrastructures.
The acquisition is expected to enhance IBM’s hybrid cloud platform, optimised for AI-driven complexity.
IBM anticipates significant synergies across strategic growth areas, including Red Hat, watsonx, data security, IT automation, and consulting.
In addition, the deal is expected to accelerate HashiCorp’s growth initiatives, leveraging IBM’s global reach and go-to-market strategy.
HashiCorp serves over 4,400 clients, including Bloomberg, Comcast, Deutsche Bank, GitHub, JP Morgan Chase, Starbucks, and Vodafone.
Its products are said to be used by developers and 85% of the Fortune 500 companies.
Separately, IBM and video game maker Take-Two Interactive have agreed to dismiss a patent lawsuit in a Delaware federal court.
In a joint court filing, IBM and Take-Two stated that IBM would dismiss its claims with prejudice.
The dismissal with prejudice means the claims cannot be refiled.
IBM sued Take-Two in September, alleging its games and launcher infringed patents on web advertising, virtual worlds, and user authentication.
“IBM’s $6.4bn HashiCorp acquisition under UK antitrust review ” was originally created and published by Verdict, a GlobalData owned brand.
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