SAN FRANCISCO: Tech major IBM on Monday announced it is acquiring Apptio, a leader in financial and operational IT management and optimisation (FinOps) software, for $4.6 billion in an all-cash deal.

The acquisition will accelerate the advancement of IBM's IT automation capabilities and enable enterprise leaders to deliver enhanced business value across technology investments.

IBM CEO and Chairman Arvind Krishna said that Apptio's offerings combined with IBM's IT automation software and watsonx AI platform, “gives clients the most comprehensive approach to optimise and manage all of their technology investments".

Apptio, together with IBM's IT automation software and it's watsonx AI platform, will help businesses around the world manage and optimise enterprise IT spend and derive tangible financial value and operational improvement.

“Our customers are evolving to a complex digital-first, hybrid world where technology investments are distributed and decentralized but all innovation must be aligned with clear business outcomes," Apptio co-founder and CEO Sunny Gupta said.

“We are so excited to be joining IBM and combining our industry leading offerings with IBM's global presence and strong portfolio across AIOps, automation and hybrid cloud offerings,” he added.

The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the latter half of 2023.