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IBM to Acquire Applications Software Technology LLC, Bolstering Oracle Expertise to Help Clients Transform Their Operations

1. IBM intends to acquire Applications Software Technology for public sector expertise. 2. This acquisition enhances IBM's Oracle Cloud Application solutions significantly. 3. Applications Software Technology has strong public sector relationships and expertise. 4. IBM's acquisition of Applications Software Technology will close in Q1 2025. 5. The deal will bolster IBM's consulting capabilities in cloud transformations.

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FAQ

Why Bullish?

This acquisition enhances IBM's competitive position in the cloud consulting market. Past acquisitions like Accelalpha positively influenced IBM's stock.

How important is it?

The acquisition is significant for enhancing IBM's capabilities in public sector cloud solutions, impacting long-term strategy.

Why Long Term?

The acquisition will take time to affect IBM's revenue but strengthens its service offerings. Long-term growth potential aligns with market trends towards cloud solutions.

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Applications Software Technology's deep US and UK public sector skills support clients' Oracle Cloud Application transformations , /PRNewswire/ -- IBM (NYSE: IBM) today announced its intent to acquire Applications Software Technology LLC1, a global Oracle consultancy. Applications Software Technology brings deep expertise driving business transformations with Oracle Cloud Applications, including for clients in the public sector such as local government and K-12 education. Public sector cloud transformations frequently face issues that include difficulty transitioning legacy systems, scarce skills or high security and compliance requirements. This acquisition will further enhance IBM's Oracle solutions to help clients across North America, the UK and Ireland address those complexities and drive lasting results in their digital transformations with Oracle Cloud Applications. It will build on IBM's 2024 acquisition of Accelalpha, expanding IBM's ability to help clients deploy, manage and drive value from their Oracle cloud solutions. "Public sector clients' cloud transformations often require a consulting partner with industry, domain and technology expertise," said Kelly Chambliss, Senior Vice President, IBM Consulting, Americas. "The acquisition of Applications Software Technology will boost IBM's public sector and Oracle Cloud Application skills to help clients confidently navigate their business transformations." Applications Software Technology's large team of consultants brings expertise across the Oracle Cloud Applications Suite, particularly around Oracle Fusion Cloud Enterprise Resource Management (ERP) including Enterprise Performance Management (EPM), Oracle Cloud Human Capital Management (HCM), and Oracle Fusion Configure, Price, Quote (CPQ), as well as Oracle Cloud Infrastructure (OCI), JD Edwards, and NetSuite. Applications Software Technology also brings expertise and partnerships with Salesforce and MuleSoft, specializing in public sector solutions and more. This acquisition supports IBM's open ecosystem approach which allows us to meet clients where they are, bringing together whatever technology and expertise are needed across our expanding partner ecosystem to solve the client challenge. Applications Software Technology has been an Oracle partner since 1996 and a leading provider of Oracle solutions covering areas like business process redesign and Oracle Cloud deployment. In addition to its strong public sector presence, Applications Software Technology also serves commercial clients in the manufacturing, energy and consumer packaged goods industries. "We are excited to join IBM and open up new opportunities for our people and expand transformative solutions to deliver business outcomes for our customers," said Justin Winter, CEO, Applications Software Technology. "Applications Software Technology and IBM have complementary capabilities, client relationships, service offerings and values around our people, innovation and commitment to client success. Together, we will continue to grow in the market for cloud transformation solutions." Headquartered in Lisle, Illinois, Applications Software Technology has teams across the US, UK, Canada and India. Notable past acquisitions contributing to its growth include Symatrix Limited, 9EDGE Inc. and Computer Technology Resources Inc. Applications Software Technology is currently a portfolio company of funds managed by Recognize Partners LP. Upon close, Applications Software Technology will join IBM Consulting. IBM and Oracle's partnership spans almost 40 years. IBM was named a Leader in the 2023 IDC MarketScape for Oracle Implementation Services Ecosystem Worldwide2. The acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions and regulatory approvals. Financial details of the transaction were not disclosed. For more information on Applications Software Technology, visit https://astcorporation.com/ About IBMIBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of governments and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information. Media ContactMichelle MattelsonIBM External Relations[email protected] 1 Applications Software Technology LLC refers to the four companies included in this acquisition: Applications Software Technology LLC, its subsidiaries 9Edge and Computer Technology Resources, and Symatrix Limited 2 IDC MarketScape: Worldwide Oracle Implementation Services 2023 Vendor Assessment (doc# US49837623, August 2023) SOURCE IBM WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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