(Bloomberg) -- International Business Machines Corp.’s proposed $6.4 billion takeover of software maker HashiCorp Inc. will undergo an in-depth antitrust review by the US Federal Trade Commission.
Both companies received a so-called second request seeking additional information on the deal from the antitrust agency late last week, HashiCorp disclosed in a regulatory filing on Monday. While this is typical for large deals, an in-depth review can lengthen the regulatory approval process for more complex takeovers by months or years.
HashiCorp said it still expects the deal, which was first announced in April, to close by the end of the year. A representative for IBM didn’t immediately respond to a request for comment.
IBM has sought to reinvent itself through a string of software-focused acquisitions, the largest of which was Red Hat in 2019 for $34 billion. Adding HashiCorp to its portfolio would boost its hybrid cloud and software management capabilities, IBM has said.
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