IBM to divest The Weather Company assets to Francisco Partners
IBM has agreed to divest The Weather Company’s key assets to global tech investment firm Francisco Partners. Though the exact financial details remain undisclosed, this transaction encompasses The Weather Company’s prominent consumer-focused digital platforms, including Weather.com, Weather Underground, Storm Radar, and other pivotal enterprise solutions.
The Weather Company, recognized as one of the top 10 most trusted brands in America, delivers precision weather data to an astounding average of 415 million people monthly. Their expansive digital consumer platforms, including The Weather Channel mobile app and website, coupled with their enterprise services, cater to over 2,000 businesses from diverse industries.
Francisco Partners’ acquisition covers a broad spectrum of The Weather Company’s offerings—from its consumer digital properties to its enterprise solutions that span broadcast, media, aviation, and emerging industry-specific data. Notably, The Weather Company’s sophisticated forecasting science and technology platform will be integrated under Francisco Partners’ umbrella.
IBM, however, will retain its sustainability software business, including the Environmental Intelligence Suite (EIS). IBM’s future endeavors will involve harnessing The Weather Company’s weather data for EIS, which encompasses a myriad of climate-related applications. The geospatial foundational AI model, underpinning EIS, is also powered by NASA’s satellite dataset and is part of IBM’s AI and data platform, watsonx.
The future for The Weather Company under Francisco Partners’ stewardship looks promising. With enhanced investments and resources, The Weather Company aims to offer more than just forecasts, bringing tools and insights that delve into how weather profoundly affects every facet of life, especially health. Businesses can anticipate more actionable insights, while the advertising platform ensures real-time experiences for the ad and subscription media sector, adhering strictly to consumer privacy regulations.
IBM to sell The Weather Company assets to Francisco Partners. Photo courtesy of Pete McClymont/Wikimedia Commons.
Rob Thomas, Senior Vice President at IBM, remarked, “We’ve evolved IBM as a frontrunner in hybrid cloud and AI. This divestiture underscores our continued dedication to these transformational technologies. The journey ahead for The Weather Company, boosted by Francisco Partners’ expertise, is set to be exceptional.”
Francisco Partners, with over two decades of experience, has an impressive track record of over 400 technology company investments, emphasizing quality products and services. Their portfolio boasts noteworthy carve-outs such as Dell Inc.’s Dell Software and Discovery Inc.’s Discovery Education businesses.
Alan Ni, Partner at Francisco Partners, highlighted the indispensable role The Weather Company plays, providing pivotal data-driven insights in an era of unpredictable weather patterns. Ni expressed enthusiasm about the future collaboration, emphasizing their aim to enhance The Weather Company’s tech offerings.
The conclusion of this acquisition is slated for the end of Q1 2024, contingent upon standard closing conditions, regulatory green lights, and local labor procedures.