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International Business Machines Corporation IBM has inked an agreement to acquire Applications Software Technology (“AST”) LLC, a global Oracle consultancy firm. The transaction builds on IBM's previous acquisition of Accelalpha in 2024, further enhancing its capabilities to assist clients in deploying, managing and maximizing the value of Oracle cloud solutions. The transaction, subject to customary closing conditions and certain regulatory approvals, is expected to close in the first quarter of 2025.
IBM to Enhance Oracle Expertise With the Buyout
IBM has been partnering with Oracle for nearly four decades to help clients navigate their cloud journeys and maximize their business transformations in a complex hybrid cloud environment while delivering speed to value. AST has been covering areas like business process redesign and Oracle Cloud deployment for local government and K-12 education for more than two decades. In addition to its strong public sector presence, the company also serves commercial clients in the manufacturing, energy and consumer packaged goods industries.
AST’s highly experienced team of consultants have expertise in diverse Oracle Cloud Applications Suite, focusing on Oracle Fusion Cloud Enterprise Resource Management, including Enterprise Performance Management, Oracle Cloud Human Capital Management, and Oracle Fusion Configure, Price, Quote, as well as Oracle Cloud Infrastructure, JD Edwards, and NetSuite. By combining the expertise of both organizations, IBM will be better positioned to support its public sector clients in North America, the UK and Ireland. These clients often face challenges in transitioning from legacy systems, managing skill shortages and meeting strict security and compliance requirements. The acquisition will likely enable IBM to navigate business transformations more effectively with Oracle Cloud Applications.
This acquisition further supports IBM's open ecosystem strategy, enabling it to bring together diverse technologies and expertise from its expanding partner network to meet client needs. It will offer new opportunities for AST’s employees and enhance IBM's ability to deliver transformative solutions that drive digital transformations. This advancement is anticipated to improve IBM’s productivity and deliver increased competitive advantages to its clients through Oracle’s Cloud applications and technology.
Likely IBM Payouts
IBM has evolved as a leading provider of cloud and data platforms and is poised to benefit from strong demand for hybrid cloud and artificial intelligence (AI), driving growth in Software and Consulting. The company’s growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul.
With this acquisition, IBM aims to further enhance its service offerings across different regions globally. This will likely strengthen IBM’s reputation for delivering innovative solutions across the hybrid cloud, AI and consulting services and improve its revenues in the upcoming quarters.