IBM, the IT giant, has announced the sale of The Weather Company to global investment firm Francisco Partners. The Weather Company, acquired by IBM in 2015 for $2 billion, is a renowned weather forecasting and information company. The terms and financial details of the sale were not disclosed.
The assets included in the deal are The Weather Company’s digital consumer-facing offerings, which consist of The Weather Channel mobile app, as well as cloud-based digital properties like Weather.com, Weather Underground, and Storm Radar. The enterprise offerings of The Weather Company are also part of the acquisition by Francisco Partners. Additionally, Francisco Partners will gain access to The Weather Company’s forecasting science and technology platform.
IBM will retain its sustainability software business, which includes its Environmental Intelligence Suite (EIS). This suite helps clients curate, measure, report, and operationalize ESG (Environmental, Social, and Governance) data. It enables organizations to make informed decisions, enhance performance, and comply with regulatory requirements.
Rob Thomas, Senior Vice President of Software and Chief Commercial Officer at IBM, expressed his excitement for the next phase of The Weather Company’s journey. He highlighted that IBM has transformed into a hybrid cloud and AI company in recent years, and this divestiture aligns with their strategic focus on these transformative technologies.
The Weather Company is renowned for providing highly accurate weather data to consumers and businesses. It is considered one of the top 10 most trusted brands in America. Alan Ni, a Partner at Francisco Partners, acknowledged the importance of The Weather Company’s products in delivering mission-critical, data-driven weather insights in today’s increasingly volatile weather conditions.
The transaction is expected to be completed by the end of Q1 2024, pending regulatory approvals. Under IBM’s management, The Weather Company experienced significant growth, serving more than 415 million people on average each month through its consumer-facing properties and over 2,000 businesses through its enterprise products.
Overall, this strategic move allows IBM to focus on its core businesses and continue driving innovation in the hybrid cloud and AI domains. At the same time, Francisco Partners will leverage The Weather Company’s expertise and technology to provide valuable weather insights to individuals and businesses worldwide.
