International Business Machines (IBM) has entered into an agreement to divest its weather business to private equity firm Francisco Partners, as disclosed by the technology services giant on Tuesday.
The financial terms of the transaction remain undisclosed.
This transaction encompasses The Weather Company’s consumer-centric assets, including Weather.com and Storm Radar, in addition to enterprise solutions catering to diverse sectors like media and aviation. While shedding these assets, IBM will maintain ownership of its sustainability software division.
IBM clarified that its alliance with The Weather Company’s weather data will persist, serving as a pivotal component in its software offerings with a focus on environmental insights. This strategic alignment finds application within IBM’s Environmental Intelligence Suite, powered by a NASA-endorsed model, and integrated into Watsonx, the company’s advanced artificial intelligence (AI) and data platform.
This divestiture reflects a broader trend in the tech industry, as companies navigate cost-cutting measures to counterbalance the impact of reduced demand stemming from cautious consumer and business sentiments in light of inflation concerns.