SAN FRANCISCO, CA – HashiCorp, Inc. (NASDAQ:HCP), a $6.82 billion market cap company specializing in computer programming services, announced today that its previously disclosed merger with International Business Machines Corporation (NYSE:IBM) is now expected to close in the first calendar quarter of 2025.
The company's stock, which has gained over 42% year-to-date, is currently trading near its 52-week high of $34.21. This update was provided in a recent filing with the Securities and Exchange Commission (SEC).
On April 24, 2024, HashiCorp entered into a Merger Agreement with IBM and McCloud Merger Sub, Inc., according to which HashiCorp will merge with and into McCloud Merger Sub, Inc., with HashiCorp surviving as a wholly owned subsidiary of IBM. The merger is subject to certain conditions, including regulatory approvals.
HashiCorp, which is incorporated in Delaware and headquartered at 101 Second Street, Suite 700, San Francisco, California, has its Class A Common Stock listed on the NASDAQ Stock Market under the ticker symbol HCP.
The filing also includes forward-looking statements concerning the merger and its expected timing. These statements involve certain risks and uncertainties, such as the possibility that the conditions to the closing of the merger are not satisfied or that required regulatory approvals are not obtained within the expected timeframe or at all.
Other risks highlighted include potential disruptions to HashiCorp's current plans and operations, costs related to the merger, fluctuations in HashiCorp's stock price, management's diversion of attention, competitive responses, potential litigation, and the uncertainty of the completion timing.
The SEC filing also states that HashiCorp does not assume any obligation to update the forward-looking statements provided to reflect events or circumstances that occur after the date on which they were made, except as required by law.
The merger is being closely watched by industry observers and HashiCorp stakeholders, as it may have significant implications for the company's future operations and market position.
This announcement is based on a press release statement filed with the SEC.
In other recent news, HashiCorp Inc reported strong Q2 financial results, notably achieving non-GAAP operating income in the black for the first time. The company's revenue reached $165.1 million, surpassing both BTIG's projection and the consensus estimate, with a growth rate of 15.3%. HashiCorp's earnings per share (EPS) of $0.08 also outperformed estimates.
In the wake of these results, BTIG maintained a Neutral rating on HashiCorp, while Citi resumed coverage with a neutral rating and a new price target of $35.00. KeyBanc also maintained its Sector Weight rating on HashiCorp.
These recent developments come amidst HashiCorp's impending acquisition by IBM, expected to finalize by the end of 2024. The acquisition has already received approval from HashiCorp shareholders and is currently pending regulatory approvals. BTIG has adjusted its fiscal year 2025 revenue estimate for HashiCorp to $661.6 million, and improved the forecast for the operating margin to -1.8% from the previous -5.7%.
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