Artificial Intelligence
The Global Freight Transport Market size is expected to reach $57.1 billion by 2028, rising at a market growth of 10.8% CAGR during the forecast period
New York, Jan. 25, 2023 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Global Freight Transport Market Size, Share & Industry Trends Analysis Report By Offering, By Mode of Transport, By Vertical, By Regional Outlook and Forecast, 2022 – 2028” – https://www.reportlinker.com/p06412042/?utm_source=GNW
For instance, Canada and the European Union agreed to a thorough economic trade pact. 98% of the tariffs on European goods traded across Europe and Canada are being eliminated by the Canadian government as a result of this agreement. By lowering commodity prices, which naturally boosts demand for freight transportation, such agreements help the freight transport market expand.
Many freight transportation management solutions, including fleet tracking & maintenance, warehouse management system, security & monitoring system, and 3PL solutions, can be used to address logistics issues because end-users and manufacturers in developing nations, like India, lack the internal control necessary to do so. This aspect stimulates the development of the target market as a whole.
Additional factors driving the demand for specialist freight transport and supply chain execution competencies include the expansion of e-commerce and entrepreneurial endeavors. Because logistics, inventory, and fixed expenses are reduced when shippers hire freight transportation services, they benefit.
Numerous businesses have outsourced their freight transport operations as a result of globalization since they are unable to manage global supply chain activities. Cargo transportation businesses offer better and more creative ways to maximize the efficiency of their services, offering benefits including lower capital costs, door-to-door service, flexibility, and a lower chance of damage during transit.
COVID-19 Impact Analysis
Global supply chain activities have been adversely affected by the COVID-19 pandemic. The crisis put unheard-of pressure on the logistics and transportation systems. Lockdowns were put into place in a number of nations, which caused uncertainty for the shippers while shipping their products. The logistics networks were disturbed by the imbalance between supply and demand, along with the lack of long-haul and last-mile fulfillment service capacity, which limited the growth of the freight transport sector. A decline in consumption has also been seen on the demand side.
Market Growth Factors
Rapid Industrialization And Increasing Acceptance Of Industry 4.0
It is anticipated that rapid industrialization and the growing adoption of Industry 4.0 will enable the manufacture of high-quality goods at low cost. Road freight transportation is the best option for Industry 4.0 since it provides flexible and more affordable short-distance transit. Additionally, the demand for food, beverages, and other consumer goods is anticipated to rise with population growth, supporting market growth. The future of the global supply chain is finally beginning to be shaped by Industry 4.0 as a true driving force. Thus, the market for freight transportation is driven by the growing use of Industry 4.0.
Escalating Need For Prompt Delivery
In particular, the logistics sector has seen an increase in the need for on-time delivery, which has evolved into a crucial differentiator among its rivals. The market has grown due to the introduction of numerous technologies in freight transportation for efficient management of the transportation process. One-third of the cost of logistics is accounted for by transportation management, which has a significant impact on how well the market as a whole performs. For brands, increased client retention is facilitated by on-time delivery. As a result, the market for freight transportation is driven by the rising need for on-time delivery.
Market Restraining Factors
Increased Carbon Emissions
As pandemic restrictions were eased and passenger and cargo traffic picked up after a historic fall in 2020, world Co2 emissions from the transport industry recovered in 2021, rising by 8% to over 7.7 Gt CO2. a number of variables, including the increased carbon emissions brought on by the usage of diesel fuel in road transportation. Transport emissions are rising far more quickly than GDP in many emerging nations. Thus, the growth of the freight transportation market is being hampered by rising carbon emissions.
Offering Outlook
Based on offering, the market is categorized into Solutions and Services. In 2021, the service segment accounted for a large share of the revenue. On the basis of service offerings, the service segment is further categorized into Managed services, business services, and system integration. The demand for freight management services, which help companies deliver freight and complete the supply chain effectively and economically, is primarily responsible for the segment’s rise.
Mode Of Transportation Outlook
Based on the mode of transportation, the market is categorized into railways, roads, seaways, and aviation. During the forecast period, it is anticipated that the Seaways & airways segment will develop at a promising rate. The adoption of sustainable aviation fuels in response to climate change, speedier delivery, and rapid airport building in developing nations are all factors contributing to the growth of this market.
Verticals Outlook
Based on verticals, the market is categorized into Retail & E-commerce, Automotive, Aerospace & Defense, Pharmaceuticals, Energy, and Others. The pharmaceutical segment is anticipated to expand at significant growth during the anticipated period. The most important link in a logistical network is pharmaceutical transport since the commodities being delivered are meant for human consumption. To guarantee that the drugs are delivered to the end user in the proper manner, total control over the entire distribution chain is necessary.
Regional Outlook
Based on geography, the market is categorized into North America, Europe, Asia Pacific, and LAMEA. North America dominated the global market in 2021 and is predicted to maintain its dominance during the forecast period. Due to the presence of numerous significant logistics businesses, e-commerce behemoths, and suppliers of freight solutions in the United States and Canada. The continuing development and uptake of emerging technologies like artificial intelligence, machine learning, and near-field communication also contribute to the expansion of the market.
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; United Parcel Service, Inc. is the forerunner in the Freight Transport Market. Companies such as Oracle Corporation, FedEx Corporation, and SAP SE are some of the key innovators in Freight Transport Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include C.H. Robinson Worldwide, Inc., Deutsche Post DHL Group (The Deutsche Post AG), FedEx Corporation, Kuehne + Nagel International AG (Kuehne Holding AG), United Parcel Service, Inc., SAP SE, Oracle Corporation, Schneider National, Inc., DSV A/S, and Nippon Express Co., Ltd.
Recent Strategies Deployed in Freight Transport Market
Partnerships, Collaborations and Agreements:
Oct-2022: Kuehne+Nagel entered into a partnership with Pepco, a fast-growing retailer engaged in providing apparel for the entire family and household products at very low prices. Under this partnership, Kuehne+Nagel would offer automation and warehousing specialization for the Bulgarian, Romanian and Greek markets. Moreover, this partnership not only addresses Pepco’s requirement for speed and agility but also serves for a better sustainable future.
Jun-2022: Oracle partnered with Kyndryl, an IT infrastructure services provider. The partnership is aimed to help customers boost their journey to the cloud by providing managed cloud solutions to enterprises across the world.
Apr-2022: United Parcel Service (UPS) signed an agreement with Jumia, the Pan-African e-commerce platform. Through this Agreement, Jumia would extend to extend United Parcel Service’s logistics abilities and infrastructure for enhancing its delivery service offering in Africa.
Feb-2022: C.H. Robinson partnered with Waymo via, an autonomous driving solution for moving goods. Through this partnership, Companies would integrate C.H. Robinson’s Navisphere technology, one of the most connected platforms with the Waymo Driver, an autonomous driving technology. Moreover, this partnership would structure upcoming developments and broaden autonomous driving technology as an extra transportation solution.
Jan-2022: FedEx Corporation came into collaboration with Microsoft Corporation, a technology corporation engaged in the production of computer software, consumer electronics, and personal computers. Through this partnership, companies would transform logistics, commerce, and supply chains. Additionally, FedEx would integrate FedEx network intelligence with abilities from Microsoft Dynamics 365 to unveil “logistics as a service”, a cross-platform for merchants, brands, and retailers.
Dec-2021: FedEx Express, a subsidiary of FedEx Corp., came into partnership with Delhivery, the fully-integrated logistics services player in India. Under this agreement, both companies would offer advanced solutions and services aimed to enhance efficiency, speed, and access for Delhivery and FedEx customers to open up India’s ability in International trade.
Oct-2021: Kuehne+Nagel announced its expanded partnered with Blume Global, a provider of supply chain execution and visibility technology solutions. Under this partnership, Blume would offer Kuehne+Nagel a cognitive intermodal TMS, among other solutions, for its complete North American business.
Jun-2021: United Parcel Service partners with ParcelHub, a retail business company with expertise in offering courier service and fulfillment centers. Under this partnership, United Parcel Service would extend its retail footprint in Malaysia and capitalize on the region’s growing logistics and e-commerce demand.
Jul-2020: United Parcel Service partnered with Estafeta, an express and logistic service company for online retailers. This partnership would allow small and midsize businesses (SMEs) in Mexico to reach over 220 countries and territories across the world, also customers in the United States within a business day.
Acquisitions and Mergers:
Nov-2022: UPS acquired Bomi Group, a provider of healthcare logistics. Under this acquisition, UPS Healthcare, a healthcare unit of UPS would add temperature-controlled facilities in 14 countries across Latin America and Europe.
Sep-2022: DHL Supply Chain acquired Monta, a Dutch fulfillment provider. Under the acquisition, DHL would improve its response to the requirements of Small and Medium Enterprises and smaller online stores.
Jun-2022: Schneider acquired deBoer Transportation, a regional and dedicated carrier. This acquisition aligns with Schneider’s strategy and combines deBoer Transportation into existing businesses of Schneider with equipment and drivers offered to assist growth opportunities in power-only and dedicated operations.
Mar-2022: Deutsche Post DHL Group completed the acquisition of J.F. Hillebrand Group AG, a company with expertise in the logistics of beer, spirits, and wine. Through this acquisition, Deutsche Post DHL Group would add multiple services to its ocean freight offering, which would reinforce longstanding client relationships and income from the beginning.
Jan-2022: Schneider completed the acquisition of Midwest Logistics Systems, a truckload carrier based in Ohio, United States. Through this acquisition, Schneider would increase annual revenue in its operations with more than 5000 trucks.
May-2021: C.H. Robinson took over Combinex Holding B.V., a company specializing in transport services for dry goods and fresh & frozen goods. Under this acquisition, C.H. Robinson would reinforce its presence in Europe specifically in Western Europe. Moreover, Combinex would deliver more haul abilities with a dedicated fleet, broadening its footprint in the short-medium haul market.
May-2021: Kuehne+Nagel took over Apex International, a global player in anilox and embossing technologies. This acquisition aimed to broaden Kuehne+Nagel’s presence in the Asian market, particularly on the transpacific and intra-Asia trade routes.
Mar-2020: C.H. Robinson completed the acquisition of Prime Distribution Services, a North American provider of retail consolidation and value-added warehouse services. This acquisition would broaden C.H. Robinson’s retail consolidation business and delivers additional abilities, specialization, and scale to the company’s offering.
Scope of the Study
Market Segments covered in the Report:
By Offering
• Services
• Solution
o Freight Security & Monitoring System
o Fleet Tracking & Maintenance Solution
o Warehouse Management System
o Freight Information Management System
o Freight Transportation Cost Management
o Freight Mobility & Operational Management Solutions
o Freight 3PL Solution
By Mode of Transport
• Roadways
• Railways
• Seaways & Airways
By Vertical
• Retail & E-commerce
• Automotive
• Aerospace & Defense
• Pharmaceuticals
• Energy
• Others
By Geography
• North America
o US
o Canada
o Mexico
o Rest of North America
• Europe
o Germany
o UK
o France
o Russia
o Spain
o Italy
o Rest of Europe
• Asia Pacific
o China
o Japan
o India
o South Korea
o Singapore
o Malaysia
o Rest of Asia Pacific
• LAMEA
o Brazil
o Argentina
o UAE
o Saudi Arabia
o South Africa
o Nigeria
o Rest of LAMEA
Companies Profiled
• C.H. Robinson Worldwide, Inc.
• Deutsche Post DHL Group (The Deutsche Post AG)
• FedEx Corporation
• Kuehne + Nagel International AG (Kuehne Holding AG)
• United Parcel Service, Inc.
• SAP SE
• Oracle Corporation
• Schneider National, Inc.
• DSV A/S
• Nippon Express Co., Ltd.
Unique Offerings
• Exhaustive coverage
• Highest number of market tables and figures
• Subscription based model available
• Guaranteed best price
• Assured post sales research support with 10% customization free
Read the full report: https://www.reportlinker.com/p06412042/?utm_source=GNW
About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need – instantly, in one place.
__________________________
Artificial Intelligence
Building Energy Management Systems Market Projected to Reach $67.69 billion by 2030 – Exclusive Report by 360iResearch
PUNE, India, April 24, 2024 /PRNewswire/ — The report titled “Building Energy Management Systems Market by Component (Hardware, Services, Software), Type (Integrated Building Energy Management Systems, Standalone Building Energy Management Systems), Application, Deployment Mode, End-Use – Global Forecast 2024-2030” is now available on 360iResearch.com’s offering, presents an analysis indicating that the market projected to grow from a size of $34.52 billion in 2023 to reach $67.69 billion by 2030, at a CAGR of 10.09% over the forecast period.
“Revolutionizing Energy Efficiency Globally With The Evolution of Building Energy Management Systems (BEMS)”
In an era where energy conservation and efficiency have become paramount, building energy management systems (BEMS) are at the forefront of this transformation, offering solutions that monitor, control, and optimize energy usage within buildings. These advanced systems, leveraging real-time data analytics, automate energy control, enhance energy savings, reduce costs, and contribute to a greener planet. Primarily utilized in commercial spaces, residential areas, and industrial sectors, BEMS has a broad application scope, covering HVAC, lighting, and security systems. Factors driving the expansion of the BEMS market include escalating energy expenses, heightened awareness of environmental impacts, and the increasing incorporation of Internet of Things (IoT) and cloud-based technologies, coupled with supportive government initiatives promoting energy-efficient infrastructures. Although challenges such as high initial costs and technology integration barriers exist, the advent of AI and IoT technologies within BEMS heralds a future of predictive energy management and remote operational capabilities, with a growing emphasis on integrating renewable energy sources. Regions such as the United States, Canada, the European Union, and emerging economies such as China and India are witnessing significant growth in BEMS adoption, spurred by regulatory policies and a shift towards sustainable building practices. This global movement toward BEMS signals a step toward reducing carbon footprints and highlights the collective effort to embrace technology for a sustainable future.
Download Sample Report @ https://www.360iresearch.com/library/intelligence/building-energy-management-systems
“Harnessing Energy Management for Sustainability and Efficiency”
Data centers are pivotal infrastructures in the digital transformation era, consuming up to 50 times more energy than typical commercial spaces. This energy demand positions data centers as key contributors to the U.S.’s overall electricity consumption. Recognizing this, implementing building energy management systems (BEMS) is crucial in mitigating the environmental impact and operational costs associated with data centers. BEMS optimizes cooling systems to prevent equipment overheating, thereby enhancing energy efficiency by leveraging real-time data. Such systems reduce the power usage effectiveness (PUE) ratio, highlighting a move toward more sustainable consumption patterns and ensuring data centers’ operational continuity. Integrating seamlessly with existing infrastructure, BEMS offers a comprehensive approach to energy management, enabling more innovative cooling, efficient power usage, and predictive maintenance. This transition highlights a commitment to environmental responsibility and fosters operational efficiency, setting a new standard for data center operations worldwide.
“Revolutionizing Building Efficiency With Advanced Energy Management Systems Optimized Usage”
In push toward sustainability, building energy management systems (BEMS) stands at the forefront of innovation, integrating sophisticated hardware such as sensors, actuators, controllers, and more to manage and reduce energy consumption in buildings meticulously. These systems work in concert to monitor environmental conditions and adjust heating, ventilation, and air conditioning (HVAC) settings in real time, leading to significant energy savings. BEMS provides valuable data that helps identify savings opportunities, while networking tools ensure seamless communication between devices by precisely tracking energy flow through meters. Servers process vast amounts of data, enabling detailed analysis and actionable insights to refine energy use further. Additionally, comprehensive services, including customized consultations and dedicated support, ensure that each BEMS is tailored to a building’s unique needs, providing efficient operation and extended system longevity. BEMS exemplifies the strategic shift toward more sustainable and operationally excellent building management through the collaborative synergy of hardware, software, and expert services.
Request Analyst Support @ https://www.360iresearch.com/library/intelligence/building-energy-management-systems
“Schneider Electric SE at the Forefront of Building Energy Management Systems Market with a Strong 13.97% Market Share”
The key players in the Building Energy Management Systems Market include Schneider Electric SE, Honeywell International Inc., Azbil Corporation, Emerson Electric Co., Johnson Controls International PLC, and others. These prominent players focus on strategies such as expansions, acquisitions, joint ventures, and developing new products to strengthen their market positions.
“Introducing ThinkMi: Revolutionizing Market Intelligence with AI-Powered Insights for the Building Energy Management Systems Market”
We proudly unveil ThinkMi, a cutting-edge AI product designed to transform how businesses interact with the Building Energy Management Systems Market. ThinkMi stands out as your premier market intelligence partner, delivering unparalleled insights with the power of artificial intelligence. Whether deciphering market trends or offering actionable intelligence, ThinkMi is engineered to provide precise, relevant answers to your most critical business questions. This revolutionary tool is more than just an information source; it’s a strategic asset that empowers your decision-making with up-to-the-minute data, ensuring you stay ahead in the fiercely competitive Building Energy Management Systems Market. Embrace the future of market analysis with ThinkMi, where informed decisions lead to remarkable growth.
Ask Question to ThinkMi @ https://app.360iresearch.com/library/intelligence/building-energy-management-systems
“Dive into the Building Energy Management Systems Market Landscape: Explore 180 Pages of Insights, 566 Tables, and 26 Figures”
PrefaceResearch MethodologyExecutive SummaryMarket OverviewMarket InsightsBuilding Energy Management Systems Market, by ComponentBuilding Energy Management Systems Market, by TypeBuilding Energy Management Systems Market, by ApplicationBuilding Energy Management Systems Market, by Deployment ModeBuilding Energy Management Systems Market, by End-UseAmericas Building Energy Management Systems MarketAsia-Pacific Building Energy Management Systems MarketEurope, Middle East & Africa Building Energy Management Systems MarketCompetitive LandscapeCompetitive PortfolioInquire Before Buying @ https://www.360iresearch.com/library/intelligence/building-energy-management-systems
Related Reports:
Home Energy Management System Market – Global Forecast 2024-2030Energy Management System Market – Global Forecast 2024-2030Intelligent Building Automation Technologies Market – Global Forecast 2024-2030About 360iResearch
Founded in 2017, 360iResearch is a market research and business consulting company headquartered in India, with clients and focus markets spanning the globe.
We are a dynamic, nimble company that believes in carving ambitious, purposeful goals and achieving them with the backing of our greatest asset — our people.
Quick on our feet, we have our ear to the ground when it comes to market intelligence and volatility. Our market intelligence is diligent, real-time and tailored to your needs, and arms you with all the insight that empowers strategic decision-making.
Our clientele encompasses about 80% of the Fortune Global 500, and leading consulting and research companies and academic institutions that rely on our expertise in compiling data in niche markets. Our meta-insights are intelligent, impactful and infinite, and translate into actionable data that support your quest for enhanced profitability, tapping into niche markets, and exploring new revenue opportunities.
Contact 360iResearchMr. Ketan Rohom360iResearch Private Limited,Office No. 519, Nyati Empress,Opposite Phoenix Market City,Vimannagar, Pune, Maharashtra,India – 411014.Email: [email protected]: +1-530-264-8485India: +91-922-607-7550
To learn more, visit 360iresearch.com or follow us on LinkedIn, Twitter, and Facebook.
Logo: https://mma.prnewswire.com/media/2359256/360iResearch_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/building-energy-management-systems-market-projected-to-reach-67-69-billion-by-2030—exclusive-report-by-360iresearch-302124905.html
Artificial Intelligence
Terra Drone, Unifly, and Aloft Launch UTM Development for AAM Targeting Global Markets
TOKYO, April 25, 2024 /PRNewswire/ — Terra Drone Corporation, a leading drone and Advanced Air Mobility (AAM) technology provider headquartered in Japan, announced today the launch of joint development with its Group companies Unifly NV (“Unifly”) and Aloft Technologies Inc. (“Aloft”) focused on UAS Traffic Management (UTM) for AAMs targeting global markets. Terra Drone has been making strides in its pioneering UTM business via strategic investments in Unifly, a leading UTM technology provider based in Belgium, and Aloft, which has the top UTM market share in the U.S. This collaboration marks the world’s first-ever joint UTM development for AAMs by multiple companies with extensive track records in UTM implementation and operation.
The three companies pursue joint UTM development to capitalize on the rapid global progress in electric vertical take-off and landing aircrafts (eVTOLs), set to revolutionize transportation. Morgan Stanley forecasts the Urban Air Mobility (UAM) market to reach $1 trillion by 2040 and $9 trillion by 2050 (1), with eVTOLs gaining global recognition through test flights and prototype showcases.
The companies proudly announce initiatives to enhance their existing UTM platforms in anticipation of the surge in eVTOL aircraft and drone activities. The shared vision for the UTM platform is to enable safe and efficient flight operations for eVTOLs and drones in the foreseeable future.
Recognizing the evolving needs of the AAM industry, they are dedicated to extending their platform by incorporating crucial additional functions. These enhancements, designed with automation at their core, aim to streamline operational efficiencies and pave the way for the integration of their increasingly automated UTM technology into the design and operational framework of AAMs. Through these efforts, they aim to set new standards in UTM and to facilitate the seamless integration of eVTOLs and drones into the national airspace, bolstering the potential for the AAM industry.
Through this initiative, they aim to build a global UTM infrastructure that kickstarts the AAM industry worldwide, creating a cohesive ecosystem that supports AAM growth and addresses broader challenges of urban mobility, sustainability, and air traffic safety.
Notes to Editor:
Research by Morgan Stanley in a report titled “eVTOL/Urban Air Mobility TAM Update: A Slow Take-Off, But Sky’s the Limit” https://advisor.morganstanley.com/the-busot-group/documents/field/b/bu/busot-group/Electric%20Vehicles.pdf]
Photo – https://mma.prnewswire.com/media/2396553/Terra_Drone.jpgLogo – https://mma.prnewswire.com/media/2186129/Terra_Drone_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/terra-drone-unifly-and-aloft-launch-utm-development-for-aam-targeting-global-markets-302126451.html
Artificial Intelligence
IBM to Acquire HashiCorp, Inc. Creating a Comprehensive End-to-End Hybrid Cloud Platform
$6.4 billion acquisition adds suite of leading hybrid and multi-cloud lifecycle management products to help clients grappling with today’s AI-driven application growth and complexity
HashiCorp’s capabilities to drive significant synergies across multiple strategic growth areas for IBM, including Red Hat, watsonx, data security, IT automation and Consulting
As a part of IBM, HashiCorp is expected to accelerate innovation and enhance its go-to-market, growth and monetization initiatives
Transaction expected to be accretive to Adjusted EBITDA within the first full year, post close, and free cash flow in year two
ARMONK, N.Y. and SAN FRANCISCO, April 24, 2024 /PRNewswire/ — IBM (NYSE: IBM) and HashiCorp Inc. (NASDAQ: HCP), a leading multi-cloud infrastructure automation company, today announced they have entered into a definitive agreement under which IBM will acquire HashiCorp for $35 per share in cash, representing an enterprise value of $6.4 billion. HashiCorp’s suite of products provides enterprises with extensive Infrastructure Lifecycle Management and Security Lifecycle Management capabilities to enable organizations to automate their hybrid and multi-cloud environments. Today’s announcement is a continuation of IBM’s deep focus and investment in hybrid cloud and AI, the two most transformational technologies for clients today.
“Enterprise clients are wrestling with an unprecedented expansion in infrastructure and applications across public and private clouds, as well as on-prem environments. The global excitement surrounding generative AI has exacerbated these challenges and CIOs and developers are up against dramatic complexity in their tech strategies,” said Arvind Krishna, IBM chairman and chief executive officer. “HashiCorp has a proven track record of enabling clients to manage the complexity of today’s infrastructure and application sprawl. Combining IBM’s portfolio and expertise with HashiCorp’s capabilities and talent will create a comprehensive hybrid cloud platform designed for the AI era.”
The rise of cloud-native workloads and associated applications is driving a radical expansion in the number of cloud workloads enterprises are managing. In addition, generative AI deployment continues to grow alongside traditional workloads. As a result, developers are working with increasingly heterogeneous, dynamic, and complex infrastructure strategies. This represents a massive challenge for technology professionals.
HashiCorp’s capabilities enable enterprises to use automation to deliver lifecycle management for infrastructure and security, providing a system of record for the critical workflows needed for hybrid and multi-cloud environments. HashiCorp’s Terraform is the industry standard for infrastructure provisioning in these environments. HashiCorp’s offerings help clients take a cloud-agnostic, and highly interoperable approach to multi-cloud management, and complement IBM’s commitment to industry collaboration (including deep and expanding partnerships with hyperscale cloud service providers), developer communities, and open-source hybrid cloud and AI innovation.
“Our strategy at its core is about enabling companies to innovate in the cloud, while providing a consistent approach to managing cloud at scale. The need for effective management and automation is critical with the rise of multi-cloud and hybrid cloud, which is being accelerated by today’s AI revolution,” said Armon Dadgar, HashiCorp co-founder and chief technology officer. “I’m incredibly excited by today’s news and to be joining IBM to accelerate HashiCorp’s mission and expand access to our products to an even broader set of developers and enterprises.”
“Today is an exciting day for our dedicated teams across the world as well as the developer communities we serve,” said Dave McJannet, HashiCorp chief executive officer. “IBM’s leadership in hybrid cloud along with its rich history of innovation, make it the ideal home for HashiCorp as we enter the next phase of our growth journey. I’m proud of the work we’ve done as a standalone company, I am excited to be able to help our customers further, and I look forward to the future of HashiCorp as part of IBM.”
Transaction Rationale
Strong Strategic Fit – The acquisition of HashiCorp by IBM creates a comprehensive end-to-end hybrid cloud platform built for AI-driven complexity. The combination of each company’s portfolio and talent will deliver clients extensive application, infrastructure and security lifecycle management capabilitiesAccelerates growth in key focus areas – Upon close, HashiCorp is expected to drive significant synergies for IBM, including across multiple strategic growth areas like Red Hat, watsonx, data security, IT automation and Consulting. For example, the powerful combination of Red Hat’s Ansible Automation Platform’s configuration management and Terraform’s automation will simplify provisioning and configuration of applications across hybrid cloud environments. The two companies also anticipate an acceleration of HashiCorp’s growth initiatives by leveraging IBM’s world-class go-to-market strategy, scale, and reach, operating in more than 175 countries across the globeExpands Total Addressable Market (TAM) – The acquisition will create the opportunity to deliver more comprehensive hybrid and multi-cloud offerings to enterprise clients. HashiCorp’s offerings, combined with IBM and Red Hat, will give clients a platform to automate the deployment and orchestration of workloads across evolving infrastructure including hyperscale cloud service providers, private clouds and on-prem environments. This will enhance IBM’s ability to address the total cloud opportunity, which according to IDC had a TAM of $1.1 trillion in 2023, with a compound annual growth rate in the high teens through 2027.1Attractive Financial Opportunity – The transaction will accelerate IBM’s growth profile over time driven by go-to-market and product synergies. This growth combined with operating efficiencies, is expected to achieve substantial near-term margin expansion for the acquired business. It is anticipated that the transaction will be accretive to Adjusted EBITDA within the first full year, post close, and free cash flow in year two.HashiCorp boasts a roster of more than 4,400 clients, including Bloomberg, Comcast, Deutsche Bank, GitHub, J.P Morgan Chase, Starbucks and Vodafone. HashiCorp’s offerings have widescale adoption in the developer community and are used by 85% of the Fortune 500. Their community products across infrastructure and security were downloaded more than 500 million times in HashiCorp’s FY2024 and include:
Terraform – provides organizations with a single workflow to provision their cloud, private datacenter, and SaaS infrastructure and continuously manage infrastructure throughout its lifecycleVault – provides organizations with identity-based security to automatically authenticate and authorize access to secrets and other sensitive dataAdditional products – Boundary for secure remote access; Consul for service-based networking; Nomad for workload orchestration; Packer for building and managing images as code; and Waypoint internal developer platformTransaction Details
Under the terms of the agreement, IBM will acquire HashiCorp for $35 per share in cash, or $6.4 billion enterprise value, net of cash. HashiCorp will be acquired with available cash on hand.
The boards of directors of IBM and HashiCorp have both approved the transaction. The acquisition is subject to approval by HashiCorp shareholders, regulatory approvals and other customary closing conditions.
The Company’s largest shareholders and investors, who collectively hold approximately 43% of the voting power of HashiCorp’s outstanding common stock, entered into a voting agreement with IBM pursuant to which each has agreed to vote all of their common shares in favor of the transaction and against any alternative transactions.
The transaction is expected to close by the end of 2024.
____________________1 The total cloud opportunity is the sum of the cloud-directed spends across Hardware, IT services and SW for Private and Public cloud implementation, sourced from IDC’s Worldwide Black Book Live Edition, March 2024 (V1 2024)
Conference Call Details
IBM’s regular quarterly earnings conference call is scheduled to begin at 5:00 p.m. ET, today. The Webcast may be accessed here. Presentation charts will be available shortly before the Webcast.
About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.
About HashiCorp
HashiCorp is The Infrastructure Cloud™ company, helping organizations automate multi-cloud and hybrid environments with Infrastructure Lifecycle Management and Security Lifecycle Management. HashiCorp offers The Infrastructure Cloud on the HashiCorp Cloud Platform (HCP) for managed cloud services, as well as self-hosted enterprise offerings and community source-available products. The company is headquartered in San Francisco, California. For more information, visit HashiCorp.com.
Press Contacts:
IBM:Tim Davidson, [email protected]
HashiCorp:Matthew Sherman / Jed Repko / Haley Salas / Joycelyn BarnettJoele Frank, Wilkinson Brimmer Katcher212-355-4449
Additional Information and Where to Find It
HashiCorp, Inc. (“HashiCorp”), the members of HashiCorp’s board of directors and certain of HashiCorp’s executive officers are participants in the solicitation of proxies from stockholders in connection with the pending acquisition of HashiCorp (the “Transaction”). HashiCorp plans to file a proxy statement (the “Transaction Proxy Statement”) with the Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies to approve the Transaction. David McJannet, Armon Dadgar, Susan St. Ledger, Todd Ford, David Henshall, Glenn Solomon and Sigal Zarmi, all of whom are members of HashiCorp’s board of directors, and Navam Welihinda, HashiCorp’s chief financial officer, are participants in HashiCorp’s solicitation. Information regarding such participants, including their direct or indirect interests, by security holdings or otherwise, will be included in the Transaction Proxy Statement and other relevant documents to be filed with the SEC in connection with the Transaction. Additional information about such participants is available under the captions “Board of Directors and Corporate Governance,” “Executive Officers” and “Security Ownership of Certain Beneficial Owners and Management” in HashiCorp’s definitive proxy statement in connection with its 2023 Annual Meeting of Stockholders (the “2023 Proxy Statement”), which was filed with the SEC on May 17, 2023 (and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1720671/000114036123025250/ny20008192x1_def14a.htm). To the extent that holdings of HashiCorp’s securities have changed since the amounts printed in the 2023 Proxy Statement, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC (which are available at https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001720671&type=&dateb=&owner=only&count=40&search_text=). Information regarding HashiCorp’s transactions with related persons is set forth under the caption “Related Person Transactions” in the 2023 Proxy Statement. Certain illustrative information regarding the payments to that may be owed, and the circumstances in which they may be owed, to HashiCorp’s named executive officers in a change of control of HashiCorp is set forth under the caption “Executive Compensation—Potential Payments upon Termination or Change in Control” in the 2023 Proxy Statement. With respect to Ms. St. Ledger, certain of such illustrative information is contained in the Current Report on Form 8-K filed with the SEC on June 7, 2023 (and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1720671/000162828023021270/hcp-20230607.htm). Promptly after filing the definitive Transaction Proxy Statement with the SEC, HashiCorp will mail the definitive Transaction Proxy Statement and a WHITE proxy card to each stockholder entitled to vote at the special meeting to consider the Transaction. STOCKHOLDERS ARE URGED TO READ THE TRANSACTION PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT HASHICORP WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders may obtain, free of charge, the preliminary and definitive versions of the Transaction Proxy Statement, any amendments or supplements thereto, and any other relevant documents filed by HashiCorp with the SEC in connection with the Transaction at the SEC’s website (http://www.sec.gov). Copies of HashiCorp’s definitive Transaction Proxy Statement, any amendments or supplements thereto, and any other relevant documents filed by HashiCorp with the SEC in connection with the Transaction will also be available, free of charge, at HashiCorp’s investor relations website (https://ir.hashicorp.com/), or by emailing HashiCorp’s investor relations department ([email protected]).
Forward-Looking Statements
Certain statements contained in this communication may be characterized as forward-looking under the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially.
Statements in this communication regarding IBM and HashiCorp that are forward-looking may include statements regarding: (i) the Transaction; (ii) the expected timing of the closing of the Transaction; (iii) considerations taken into account in approving and entering into the Transaction; (iv) the anticipated benefits to, or impact of, the Transaction on IBM’s and HashiCorp’s businesses; and (v) expectations for IBM and HashiCorp following the closing of the Transaction. There can be no assurance that the Transaction will be consummated.
Risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, in addition to those identified above, include: (i) the possibility that the conditions to the closing of the Transaction are not satisfied, including the risk that required approvals from HashiCorp’s stockholders for the Transaction or required regulatory approvals to consummate the Transaction are not obtained, on a timely basis or at all; (ii) the occurrence of any event, change or other circumstance that could give rise to a right to terminate the Transaction, including in circumstances requiring HashiCorp to pay a termination fee; (iii) possible disruption related to the Transaction to IBM’s and HashiCorp’s current plans, operations and business relationships, including through the loss of customers and employees; (iv) the amount of the costs, fees, expenses and other charges incurred by IBM and HashiCorp related to the Transaction; (v) the risk that IBM’s or HashiCorp’s stock price may fluctuate during the pendency of the Transaction and may decline if the Transaction is not completed; (vi) the diversion of IBM and HashiCorp management’s time and attention from ongoing business operations and opportunities; (vii) the response of competitors and other market participants to the Transaction; (viii) potential litigation relating to the Transaction; (ix) uncertainty as to timing of completion of the Transaction and the ability of each party to consummate the Transaction; and (x) other risks and uncertainties detailed in the periodic reports that IBM and HashiCorp filed with the SEC, including IBM’s and HashiCorp’s respective Annual Reports on Form 10-K. All forward-looking statements in this communication are based on information available to IBM and HashiCorp as of the date of this communication, and, except as required by law, IBM and HashiCorp do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
Logo – https://mma.prnewswire.com/media/2319830/IBM_LOGO_1.jpg
View original content:https://www.prnewswire.co.uk/news-releases/ibm-to-acquire-hashicorp-inc-creating-a-comprehensive-end-to-end-hybrid-cloud-platform-302126677.html
-
Uncategorized6 days agoGenerative AI gold rush drives IT spending — with payoff in question
-
Uncategorized6 days ago
Do underwriters trust artificial intelligence?
-
Uncategorized6 days ago
Hans Jonas on Responsibility in the Age of Artificial Intelligence
-
Uncategorized6 days ago
Meta AI Assistant Adds Website, Expands Beyond US
-
Artificial Intelligence6 days agoFree Your Hands, QIDI Vida Smart AR Glasses Lead the Way in New Sports Experience.
-
Uncategorized6 days ago
Can artificial intelligence reduce vehicle time to market?
-
Uncategorized6 days ago
The Ottawa Hospital doctors to try AI for patient notes
-
Artificial Intelligence5 days agoAurionpro Solutions acquires Arya.ai, to power next generation Enterprise AI platforms for Financial Institutions
