Acquisition to bring Octo's expertise and
agility together with IBM's reach and scale to help accelerate U.S.
federal government digital transformation
ARMONK,
N.Y., Dec. 7, 2022 /PRNewswire/ -- IBM (NYSE:
IBM) today announced an agreement to acquire Octo, a U.S.-based IT
modernization and digital transformation services provider
exclusively serving the U.S. federal government, including defense,
health, and civilian agencies. IBM's acquisition of Octo
establishes one of the largest digital transformation partners to
the federal government. Upon the close of the acquisition, Octo's
approximately 1,500 employees will join IBM Consulting's U.S.
public and federal market organization.
Octo will be IBM's eighth acquisition of 2022. Since
Arvind Krishna became CEO of IBM in
April 2020, IBM has acquired more
than 25 companies, bolstering its hybrid cloud and artificial
intelligence (AI) capabilities. Today's news builds on prior IBM
Consulting acquisitions, including Dialexa, Neudesic,
and Taos.
Federal government agencies face significant challenges
including technology skills shortages, rebuilding of U.S. domestic
supply chains and more demand for citizen services. To address
these complex challenges, agencies need an industry partner to help
them navigate a scalable path to IT modernization with the power to
leverage emerging technologies and applications, optimize costs and
operational efficiencies, and improve security. The convergence of
new hybrid cloud and AI technologies enables government to deliver
rapid improvements and adapt to unprecedented challenges.
The acquisition of Reston,
Va.-based Octo will complement IBM's existing strengths in
IT modernization and digital transformation, enhancing its ability
to support federal agencies with a flexible, modern approach to
digital transformation and growing IBM Consulting's public and
federal market organization to 4,200 highly-skilled employees.
With a proven track record of enabling rapid IT modernization and
seamless citizen engagement, Octo also brings deep federal mission
experience, as well as certifications in the technologies most used
across the federal government.
"Governments require agility and resiliency to meet the evolving
needs of citizens directly and in real time," said John Granger, Senior Vice President of IBM
Consulting. "The combination of Octo's highly qualified and
respected team with IBM's consulting expertise, technical
capabilities and strategic partner ecosystem will enable federal
clients to transform faster and better serve citizens."
Building on a shared commitment to co-creation, oLabs, Octo's
14,000 square foot innovation center with in-house computing
capability, expands IBM's ability to work collaboratively with
federal agencies to rapidly prototype emerging technology solutions
– enabling greater impact for federal agencies and the people they
serve.
"Octo was founded on the belief that digital transformation
could be delivered at scale to modernize the federal government's
approach to today's most pressing challenges – from public
healthcare to national security, to defense and intelligence," said
Mehul Sanghani, Chief Executive
Officer of Octo. "Today, we are excited to join forces with IBM to
continue to deliver these digital transformation capabilities with
greater reach and scale."
IBM's acquisition of Octo from Arlington Capital Partners is
expected to close in the fourth quarter of this year and is subject
to customary closing conditions and regulatory clearances.
Financial details of the deal were not disclosed.
About IBM
IBM 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. More than 4,000 government 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
legendary commitment to trust, transparency, responsibility,
inclusivity and service. Visit www.ibm.com for more
information.
Contact
Banks Willis
IBM Communications, U.S. Public & Federal Sector
banks.willis@ibm.com
Marisa Conway
IBM Communications, IBM Consulting
conwaym@us.ibm.com
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SOURCE IBM