IBM signs an agreement to acquire Hershey Corp for $6.4 billion

International Business Machines (IBM) has signed an agreement to acquire cloud infrastructure automation company Hershey Corp. for $6.4 billion, with the aim of creating a comprehensive hybrid cloud platform powered by artificial intelligence.

IBM agreed to purchase Hershey Corp. at a price of $35 per share, with the acquisition being completed by the end of this year, as the company plans to finance the purchase with the cash it has available, amid expectations of enhancing its adjusted basic profits during the first full year after completing the deal, according to what I discussed. CNN.

The acquisition, which was announced on Wednesday, aims to strengthen IBM’s portfolio of cloud software products, in light of the popularity witnessed by artificial intelligence globally, according to what the company stated in an official statement.

IBM’s AI-related revenue, referred to as its AI book of business, exceeded $1 billion in the first quarter of this year.

IBM revealed its full revenues in the first quarter, amounting to $14.5 billion, pointing to the rise in revenues from software, fixed consulting, and infrastructure.

Regarding financial flow, the company said that net cash from operating activities in the same period amounted to $4.2 billion.

Software revenues amounted to $5.9 billion, while consulting revenues amounted to $5.2 billion, and infrastructure revenues reached $3.1 billion, according to the company statement.