IBM announced on Thursday that it will acquire Turbonomic, a Boston-based company that makes IT-management software for businesses.
Turbonomic, formerly known as VMTurbo, provides organizations with management software that can help maintain and optimize applications, servers, networks, databases, and other cloud-based resources.
The move is part of IBM’s growing push into providing its customers with artificial intelligence-based software solutions. The firm said it can now provide companies with automation capabilities that span IT operations and infrastructure. The idea is to help businesses run their IT systems and software more cheaply and efficiently.
“IBM continues to reshape its future as a hybrid cloud and AI company,” said Rob Thomas, senior vice president of IBM Cloud and Data Platform, in a press release. “The Turbonomic acquisition is yet another example of our commitment to making the most impactful investments to advance this strategy and ensure customers find the most innovative ways to fuel their digital transformations.”
IBM said it is focused on providing customers with a “one-stop shop of AI-powered automation capabilities for business and IT,” which it is building with Red Hat, an open source software company it acquired for $34 billion in 2019. The Turbonomic deal comes amid a series of recent IBM acquisitions, including myInvenio, Instana, and WDG Automation.
The financial terms of the deal were not disclosed, but Reuters reported that the transaction values Turbonomic at between $1.5 billion and $2 billion, based on anonymous sources. The deal is expected to close by the end of June.
Turbonomic was founded in 2008 by Shmuel Kliger, a veteran of EMC and IBM. The company, which has grown to more than 500 employees worldwide, has been led by CEO Ben Nye since 2013. Nye is also a senior advisor at Bain Capital Ventures, one of Turbonomic’s early investors. Turbonomic raised well over $100 million from venture capital investors that also included Highland Capital Partners and General Atlantic.