HashiCorp shares rose amid reports that IBM is in talks to acquire the cloud software maker

HashiCorp listed on the Nasdaq Market website on December 9, 2021.

Source: Nasdaq

Hash Company Shares rose 26% on Tuesday, according to media reports International Business Machines Corporation Negotiations are underway to acquire the cloud software maker.

Developers use HashiCorp’s software to set up and manage infrastructure in public clouds, e.g the amazon And Microsoft Companies pay HashiCorp to manage security credentials.

The Wall Street Journal, citing unnamed sources, said the deal could take effect in the coming days.

Representatives for both HashiCorp and IBM told CNBC that they do not comment on market rumors or speculation.

HashiCorp was founded in 2012 and listed on Nasdaq in 2021. In the fiscal year ended Jan. 31, the company had revenue of $583 million and a net loss of about $191 million, according to the company. Annual report. In December, HashiCorp co-founder Mitchell Hashimoto’s surname was reflected in the company’s name, announcing he was leaving.

Revenue grew by about 23% during the period, and IBM’s earnings in 2023 are expected to grow by 2%. IBM executives noted that the economic environment will be difficult in 2023. Meet with analysts in January on a conference call. The hardware, software and consulting provider reported earnings on Wednesday.

Cisco HashiCorp held $9 million worth of stock as of the end of March, according to a report. In a regulatory filing.Cisco has held initial acquisition talks with HashiCorp, according to a 2019 report, according to a person familiar with the matter.

IBM’s stock price fell after the Wall Street Journal article was published, but quickly recovered.

Read the full WSJ report here.