IBM to acquire software company Apptio for $4.6 billion
IBM CEO Arvind Krishna speaks at a panel session at the World Economic Forum in Davos, Switzerland, on Jan. 17, 2023.

IBM on Monday announced it will acquire the software company Apptio from Vista Equity Partners for $4.6 billion.

The company said the acquisition of Apptio, which offers financial and operational IT management and optimization tools, is a continuation of IBM's investment in AI and IT automation software. IBM said in a release that Apptio will help it advance its application management, optimization and observability offerings.

Shares of IBM closed up 1% on Monday.

Apptio currently serves more than 1,500 clients, including major tech companies such as Amazon , Microsoft and Google . It has three core offerings that help customers manage their cloud strategy.

"Technology is changing business at a rate and pace we've never seen before," IBM CEO Arvind Krishna said in the release. "To capitalize on these changes, it is essential to optimize investments which drive better business value, and Apptio does just that."

Apptio will be acquired with cash, and IBM said the deal is expected to close in the latter half of this year.