Tech giant IBM has announced that it’s reached an agreement to acquire Instana, an application performance monitoring startup that’s backed by investors including Meritech Capital and Accel. The financial terms of the acquisition aren’t disclosed. As a privately-held company, Instana has raised $57 million in outside funding.

IBM is acquiring Instana, a startup based in Chicago, to boost its cloud computing capabilities which is an area that the company has earmarked for its growth. The acquisition comes in the very same week that IBM acquired another company, TruQua Enterprises, which is a consulting firm that helps legacy companies migrate their operations to the cloud and adopt more modern software tools. 

With Instana, IBM is getting another addition to its suite of cloud computing tools that are made for enterprises.

Instana was founded in 2015 as a spinoff of Codecentric AG, a German software company. The company maintains a headquarters in the American city of Chicago but also has a development center in Germany from where it originated. 

Instana provides tools used by developers to monitor and manage the performance of their apps, currently employing over 100 people across the US and Germany. Following the completion of its acquisition, it’ll become housed under IBM’s cloud division.

IBM says it expects its new acquisition to close “within several months”.

Photo: IBM CEO Arvind Krishna |IBM

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