IBM has agreed to sell The Weather Company, its weather forecasting and Information Company, to Francisco Partners, a private equity firm, for an undisclosed amount. The deal, which is expected to close in the first quarter of 2024, is part of IBM’s ongoing effort to focus on its core businesses of hybrid cloud and artificial intelligence.
The Weather Company was acquired by IBM in 2015 for $2 billion. Under IBM’s ownership, the company has launched a number of new products and services, including hyperlocal forecasts, COVID-19 maps, and enhanced weather forecasts leveraging data from aircraft and smartphones.
Francisco Partners plans to invest in The Weather Company and take it “beyond forecasting alone” with “new tools and experiences” focused on health and well-being. The company also plans to offer “more actionable insights” to businesses and “real-time experiences” to ad and subscription media companies.
“Amid the growing volatility of weather, The Weather Company’s unique set of consumer, media and industry-specific products provide mission-critical, data-driven weather insights to individuals and businesses around the world,” said Alan Ni, partner at Francisco Partners. “We’re excited to partner with the management team to grow The Weather Company’s robust portfolio of technology offerings and deliver a great product experience for its customers.”