IBM has inked a definitive agreement for the acquisition of myInvenio. The proposed takeover expected to close by the end of the quarter should help advance its hybrid cloud and Artificial intelligence (AI) strategy.
With myInvenio in the fold, IBM (IBM) will offer software solutions that can help companies streamline business processes and therefore focus more on strategic work. The tech giant has already confirmed plans to integrate myInvenio’s solutions into its automation portfolio.
Based in Reggio Emilia, Italy, myInvenio boasts a data-driven software suite. Its solution allows organizations to identify the most useful business process for automation using AI. The firm comes with AI-powered capabilities for automating processes such as sales, procurement production, and accounting.
” With IBM’s planned acquisition of myInvenio, we are continuing to invest in building the industry’s most comprehensive suite of AI-powered automation capabilities for business automation so that our customers can help employees re-claim their time to focus on more strategic work,” said General Manager, Dinesh Nirmal, IBM Automation.
IBM shares are up 5.32% for the year after a 6.10% slide in 2020. (See IBM stock analysis on TipRanks).
The acquisition push comes on the heels of Morgan Stanley’s analyst, Kathryn Huberty, maintaining a Hold rating on IBM. The analyst expects the company to post EPS of $1.52.
The analyst has increased her price target of the stock to $150 from $140, implying 13.6% upside potential to current levels.
Consensus on Wall Street is a Hold based on 2 Buys, 3 Holds, and 1 Sell ratings. An average analyst price target of $134.80 implies 1.67% upside potential to current levels.
IBM scores a 6 out of 10 on TipRanks’ Smart Score rating system suggesting that the stock is likely to perform in line with market averages.
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