IBM is close to a deal to acquire cloud-software provider HashiCorp, the Wall Street Journal reported Tuesday. HashiCorp stock spiked following the report, while IBM stock is up slightly.
The deal could come together in the "coming days," the Wall Street Journal reported, citing unnamed sources. Both IBM and HashiCorp declined to comment when reached by Investor's Business Daily.
On the stock market today, HCP stock is up 22% at 30.10 in recent action. IBM stock is up 0.5% at 182.87. Shares for IBM fell immediately following the report but recovered to positive territory.
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San Francisco-based HashiCorp sells software designed to help developers manage infrastructure in public cloud providers, such as Amazon Web Services and Microsoft Azure. The company has a market capitalization of about $5 billion, prior to the report raising its value.
The deal could command a premium above where the stock was trading prior to the report, according to the Wall Street Journal. Bloomberg reported last month that HashiCorp was exploring a sale.
IBM, meanwhile, has been focusing its business on software, including for artificial intelligence. The company last year bought automation software company Apptio for about $5 billion.
The 112-year-old tech giant reports first-quarter earnings tomorrow. IBM stock is up about 13% this year, outpacing the S&P 500's 6% gain.
