08:15 AM EDT, 08/30/2024 (MT Newswires) -- HashiCorp ( HCP ) shareholders should expect a "favorable outcome" from the software company's $6.4 billion merger deal with International Business Machines ( IBM ) , Truist said Friday in a note.

While IBM ( IBM ) would benefit from "best-in-class technology assets" from acquiring HashiCorp ( HCP ), the cloud giant's ability to cross-sell products into its enterprise customer base could "dramatically accelerate" HashiCorp's ( HCP ) revenue run rate and expand margins, Truist analysts said.

The transaction is expected to close by the end of the year.

"We see the deal as a favorable outcome for HCP shareholders as the company continues to work through a transition in their go-to-market motion," Truist said, pointing out that HashiCorp ( HCP ) recently delivered its first quarter of non-GAAP profitability.

The company on Thursday posted fiscal Q2 adjusted earnings of $0.08 per diluted share, swinging from a loss of $0.10 a year earlier, on revenue of $165.1 million, up from $143.2 million a year earlier.

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