IBM is about to enter the software world once again.
The chip giant said Friday that it has agreed to buy the software giant Gigaom for $2.8 billion, or $4 billion, as part of an agreement to buy a group of its businesses.
The deal is the first major acquisition of IBM in a year, and it comes after the company acquired a slew of other companies in recent years.
The transaction, which is expected to close in the third quarter, is expected reduce the number of IBM businesses from 35 to 35 to 40.
IBM will continue to operate Gigaoms operations, which include the cloud and mobile services.
The acquisition, which will be completed in the second half of 2017, will enable IBM to take advantage of GigaOM’s network of over 3 million users worldwide.
The IBM announcement comes after IBM last month reported an increase in quarterly profit for the fourth quarter of 2016.
IBM also announced a series of changes to its business strategy and its strategy to reduce its dependence on the PC and to build more products on its cloud platform.
IBM Chief Executive Jeff Immelt said the acquisition will help Gigaoma remain relevant in the world of information technology and boost IBM’s ability to compete globally.
The company said the Gigaome team will focus on helping IBM’s clients reach and retain the highest levels of productivity, as well as help IBM and its customers achieve more and better results on the business.
Gigaom, a maker of software for video and images, said it will continue with its business model and will focus only on its core business, according to a statement from the company.
The announcement comes just months after Gigaoom announced that it had raised $2 billion in a funding round led by Accel Partners and Sequoia Capital.
The funding comes after Gigmaom raised $15 million in an earlier funding round, and the company said that the funding will help it expand its core product and services offerings.
“Gigaome is a leader in the global cloud-based video and image marketplace, and our acquisition of GIGAOM will give us access to a strong team and new partners to further enhance our cloud offerings, enabling us to provide our customers with more robust and scalable solutions to meet the changing demands of their evolving business models,” Immelt told investors in a letter.
“As a result, we expect to see continued growth in revenue and to continue to drive our business.
We will be able to deliver on our strategy to accelerate this growth and improve our competitive position in the industry, which includes the provision of cloud services, as we have in the past.”
IBm is in a tight race with Google, which recently acquired its video services division for $3.6 billion.
Last month, the company announced that its core software services business, including its cloud-hosted video and audio products, was worth $11.5 billion.
Other acquisitions in the recent past include Adobe Systems, which bought its film and television studio, and Hewlett-Packard, which acquired its computer chips business, and its consumer electronics business, for $9.9 billion in 2012.