- IBM has found a buyer for the weather forecasting and information company, which was acquired by IBM in 2015.
- The tech giant decided to sell The Weather Company in order to streamline operations.
IBM and Francisco Partners, the private equity firm, announced yesterday the latter has signed a definitive agreement to acquire The Weather Company assets. The terms and details of the deal aren’t disclosed. It is expected to close by the end of the first quarter of 2024, which is subject to customary closing conditions and regulatory approvals.
As per the acquisition, all the Weather Company’s consumer-facing apps will be acquired by the Francisco Partners. These are The Weather Channel mobile, Weather.com, Storm Radar and the Weather Underground. Other than that, the forecasting science services will also be transferred to the equity firm.
On the other hand, IBM will retain the sustainability software business, which is primarily its environmental intelligence suite for ESG reporting. IBM will continue using weather data for the geospatial AI model implemented in its data platform, like Watsonx.
IBM purchased The Weather Company for 2 Billion dollars in 2015, and since then, IBM has launched many new apps and services like hyperlocal forecasts and COVID-19 maps and even improved the weather forecasts by gathering data from smartphones and aircraft.
IBM is facing its lowest share price in over 20 years, leading to layoffs and selling off its subsidiaries. The company also recently sold Watson Health to Francisco Partners for around 1 Billion dollars. Francisco Partners feels great potential in The Weather Company and plans to invest time and resources to take it beyond weather forecasting and focus on health and well-being.
