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Tech giant IBM has announced to acquire US-based enterprise software company Turbonomic, a deal that according to media reports could be worth up to $2 billion.

With the acquisition of Turbonomic, IBM will help companies overcome the high costs associated with managing performance and availability for multiple applications sharing an increasingly complex hybrid cloud environment.

"IBM continues to reshape its future as a hybrid cloud and AI company," said Rob Thomas, Senior Vice President, IBM Cloud and Data Platform.

"The Turbonomic acquisition is yet another example of our commitment to making the most impactful investments to advance this strategy and ensure customers find the most innovative ways to fuel their digital transformations," he said in a statement on Thursday.

Turbonomic provides businesses with its ARM software that simultaneously optimizes the performance, compliance, and cost of applications in real-time.

"The addition of Turbonomic now takes our portfolio another major step forward by ensuring customers will have full visibility into what is going on throughout their hybrid cloud infrastructure, and across their entire enterprise," said Dinesh Nirmal, General Manager, IBM Automation.

As 5G adoption continues to grow, enterprises are also looking to move workloads to the edge. This is driving networking to be an integral component of the application deployment strategy.

"Businesses are looking for AI-driven software to help them manage the scale and complexity challenges of running applications cross-cloud," said Ben Nye, CEO, Turbonomic.

The transaction is ?xpected to close in the second quarter of 2021.