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IBM Closes $6.4B HashiCorp Deal After Extra Scrutiny Overseas

CRN by CRN
February 27, 2025
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‘IBM is committed to continuing to invest in and grow the HashiCorp capabilities,’ says IBM executive Rob Thomas.

IBM has closed on its $6.4 billion purchase of Terraform creator and cloud provider HashiCorp after scrutiny by overseas regulators delayed the deal.

The Armonk, N.Y.-based cloud and mainframe vendor will leverage HashiCorp’s capabilities to boost its offerings in infrastructure and security life-cycle management automation, infrastructure provisioning, multi-cloud management, consulting and artificial intelligence, among other areas, IBM said in a statement Thursday.

“Organizations globally are looking to deploy modern, hybrid cloud-ready apps, which require automated cloud infrastructure at significant scale,” Rob Thomas, senior vice president of IBM software and chief commercial officer, said in the statement. “With this acquisition, IBM is committed to continuing to invest in and grow the HashiCorp capabilities, and together, with HashiCorp’s leading technology and extensive developer community, IBM’s global reach and R&D resources, our aim is to infuse HashiCorp technology in every data center.”

[RELATED: IBM CEO: ‘Everybody Believes Technology Is Now Essential For Helping Them Grow’]

IBM Buys HashiCorp

CRN has reached out to IBM for comment.

In CRN’s 2025 Channel Chiefs, IBM said that its top channel goals for the year include adding more qualified partners and increasing the overall percentage of company revenue that comes through the channel. HashiCorp also has a channel partner program.

HashiCorp CEO Dave McJannet added in the statement that “HashiCorp has been helping the world’s largest enterprises succeed in hybrid and multi-cloud environments for over a decade.”

“We’ve seen the cloud grow from its origins and have participated first-hand in the change it has brought to the industry,” he said. “With IBM’s history, global scale and customer relationships, HashiCorp can now expand our reach to help our community of customers, practitioners and partners automate, secure and optimize their cloud infrastructure, providing an end-to-end platform for hybrid environments.”

San Francisco-based HashiCorp’s Terraform, Vault and other products are available now in IBM’s automation software portfolio, according to the tech giant. IBM will combine Vault with its Red Hat subsidiary’s OpenShift offer to improve secrets management and security capabilities.

In HashiCorp’s own statement on the deal, the company’s co-founder and CTO, Armon Dadgar, said that HashiCorp could further integrate with “many products” in the IBM and Red Hat portfolio, suggesting further integration between Terraform and Ansible, Terraform and Cloudability and Vault integration with Ansible and Guardium.

“For our broader community of users, customers and partners, we look forward to continuing to work together to solve the biggest challenges of today and beyond,” Dadgar said in the statement.

First unveiled in April, IBM had planned to close its acquisition of HashiCorp by the end of 2024. On Dec. 30, the Competition and Markets Authority (CMA) watchdog agency launched a merger inquiry review into the acquisition to consider whether the deal will hurt competition in the U.K.

The HashiCorp delay didn’t slow down IBM’s acquisition appetite, with a deal for global Oracle consultancy Applications Software Technology unveiled in January and a deal for DataStax and its cloud database development platform unveiled Tuesday.



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Tags: Business Intelligence and AnalyticsCloud PlatformsCloud SecurityCloud SoftwareCybersecurityDatabase and System SoftwareGenerative AIManaged SecurityMergers and acquisitions
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