The UK's Competition and Markets Authority (CMA) has cleared IBM's planned multibillion-dollar acquisition of infrastructure software company HashiCorp, a significant step forward for the tech giant's hybrid cloud ambitions. In a brief case update published today, the CMA announced that it had "cleared the anticipated acquisition by IBM of HashiCorp," with the full rationale for its decision to be published in due course.

The acquisition, valued at $6.4 billion, was first announced by IBM in October 2022 as part of its strategy to expand its presence in the hybrid cloud market. The deal builds on IBM's previous acquisitions, including its $34 billion purchase of Red Hat in 2019 and $4.6 billion acquisition of Apptio in 2018. IBM had indicated that it expected to close the HashiCorp deal by the end of 2024, but the transaction was always likely to attract regulatory scrutiny given its size and the involvement of two publicly-traded companies.

In December, the CMA launched an early "phase 1" investigation into the deal, inviting comment from key stakeholders. While it was never certain to proceed to a full-blown investigation, the UK's antitrust authority has been pushing to portray itself as a pro-tech, pro-growth nation, which may have influenced its decision. Last month, the UK government appointed a new CMA chairperson, ex-Amazon executive Doug Gurr, sparking concerns among smaller tech firms and not-for-profits about the CMA's new direction.

Today's decision is in-keeping with these changes, signaling the UK's willingness to support large-scale deals involving companies headquartered elsewhere. However, the transaction is not yet over the line, as the Federal Trade Commission (FTC) in the US is also reviewing the deal, although it has yet to make a formal announcement.

The acquisition, if completed, would mark a significant expansion of IBM's hybrid cloud capabilities, building on its existing strengths in areas such as artificial intelligence, blockchain, and the Internet of Things. HashiCorp's infrastructure software, which includes tools such as Terraform and Vault, would complement IBM's existing cloud offerings, enabling the company to better compete with cloud giants like Amazon Web Services, Microsoft Azure, and Google Cloud Platform.

The deal's implications extend beyond the tech industry, as it highlights the UK's efforts to position itself as a hub for global technology investment and innovation. The CMA's decision is likely to be seen as a positive signal to other companies considering large-scale acquisitions in the UK, and may pave the way for further consolidation in the tech sector.

IBM declined to comment on the CMA's decision, but the company's silence is unlikely to dampen the excitement surrounding this significant development in the tech industry. As the deal inches closer to completion, all eyes will be on the FTC's review process and the potential implications of this acquisition for the global tech landscape.