IBM Acquired Cleversafe in Hybrid-Cloud Push for $1.3 Billion in Cash
FREMONT, CA – Since businesses have realized that cloud-based software offers increased security, affordability, and are highly scalable, they have become a major part of enterprise solutions. In a similar move by IBM , the company expanded its product portfolio to include object-based cloud storage services that are designed to aid customers in managing Big Data. IBM paid more than $1.3 billion in cash last year to acquire closely held Cleversafe Inc., a developer and manufacturer of object-based storage software and appliances. The Big Blue Company had announced its completed acquisition of Cleversafe Inc. in Nov, though the agreement was signed on Oct 5, last year.
The acquisition brings in front some interesting facts; shows that the company does want to focus on integrating cloud storage to the entire service offering.
International Business Machines Corp. attributed $1 billion of the total to goodwill, which typify the difference between the purchase price and the fair value of net assets—an indication of how much eventual upside the buyer sees in the target company. (Completed technology and client relationships were valued at $364 million and $23 million, respectively, while Cleversafe’s physical assets had a total value of $86 million.)
IBM’s new acquisition explains that the team wants to use CleverSafe as the best way to bring the old solutions, the ones that aren’t that popular or maybe a little forgotten back on track. By focusing on creating Web services that can work seamlessly between private or dedicated servers and public data centers, IBM is seeking to set itself apart from other cloud providers such as Amazon Inc.
In 2015, IBM spent about $3.6 billion on 14 deals and these include Clearleap, Iris Analytics, Ustream, Truven Health Analytics, etc. Till now, Truven’s acquisition is the highest priced with a price of $2.6 billion for the year 2016. This clearly shows that the market is huge and investing.