IBM said on Thursday that it had agreed to acquire Turbonomic, a software vendor that helps companies monitor the performance of their business applications, the latest in a series of cloud computing acquisitions by the technology giant.
The deal, confirmed by an earlier Reuters report, would be IBM’s largest since it acquired Red Hat in 2019 for $ 34 billion. According to Turbonomic, this is $ 1.5 billion to $ 2 billion, subject to anonymity.
IBM’s shares rose slightly in the afternoon of trading.
The acquisition is IBM’s eleventh since Arvind Krishna took over as CEO last year. Krishna led and doubled a major transformation in hybrid cloud and artificial intelligence.
Boston-based Turbonomic offers software to improve the performance and compliance of your applications in real-time. The most recent $ 70 million fundraisers with Trend Forward Capital and Highland Capital Partners, according to a $ 963 million valuation in September 2019, according to PitchBook Data. Other sponsors of the company include Bain Capital Ventures and Cisco.
Turbonomic posted revenue growth of 41% in FY2021 as it benefits customers who accelerated the transformation of their applications to the public cloud during the coronavirus pandemic.
Turbonomic is already working with IBM, including an original equipment manufacturing (OEM) contract in May 2020.
Following the transaction, IBM plans to integrate Turbonomic’s application resource management software with Instana and its other recent acquisitions.