International Business Machines (IBM) will acquire California-based cloud software provider HashiCorp Inc (HCP) in a deal valued at $6.4 billion, the company announced on April 24, to expand its cloud-based products and be a part of the AI boom.
IBM will pay $35 per share to HashiCorp, representing a premium of 11.43% based on the stock’s last close. HashiCorp’s shares had surged after reports of the deal talks on April 23. The merger arbitrage spread on the deal is 6.71% implying some concerns that regulators might attempt to block the deal.