IBM (IBM) Agrees to Sell Software Assets to India’s HCL Technologies
On Thursday, IBM announced an agreement reached with India’s HCL Technologies Ltd. to sell them select IBM software assets for $1.8 billion, in line with Big Blue’s strategy to focus more on cloud computing.
Representing a total addressable market of more than $50 billion, the software assets in scope include products like Appscan for secure application development, BigFix for secure device management, Unica (on-premise) for marketing automation, Commerce (on-premise) for omni-channel eCommerce, Portal (on-premise) for digital experience, Notes & Domino for email and low-code rapid application development, and Connections for work stream collaboration.
Although the deal is expected to close by mid-2019, an existing licensing partnership between the two companies will continue for five of the products.
IBM has been striving to emerge as a leader in the hybrid cloud market for some time now, but its declining software sales weighed heavy on its latest quarterly revenue – which might have instigated IBM to go for this deal.
HCL, whose revenue from software services business rose about 21% in the second-quarter, plans to further strengthen its position in the software services market after this acquisition.
Payable entirely in cash including earn-out, HCL plans to fund this deal mostly through internal accruals but may also include debt worth $300 million. The deal also marks the largest ever acquisition by any Indian IT company and is expected to give HCL access to a clientele of more than 5,000 customers.
IBM in upward trend: 10-day moving average broke above 50-day moving average on May 09, 2025
The 10-day moving average for IBM crossed bullishly above the 50-day moving average on May 09, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 05, 2025. You may want to consider a long position or call options on IBM as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for IBM just turned positive on June 09, 2025. Looking at past instances where IBM's MACD turned positive, the stock continued to rise in of 38 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IBM advanced for three days, in of 355 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 273 cases where IBM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IBM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
IBM broke above its upper Bollinger Band on June 09, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. IBM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.737) is normal, around the industry mean (18.306). P/E Ratio (48.123) is within average values for comparable stocks, (45.470). Projected Growth (PEG Ratio) (2.131) is also within normal values, averaging (1.741). Dividend Yield (0.024) settles around the average of (0.023) among similar stocks. P/S Ratio (4.212) is also within normal values, averaging (9.583).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a manufacturer of various computer products through the use of advanced information technology
Industry InformationTechnologyServices
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