IBM’s Bold Move: Acquiring Cutting-Edge Applications Software Technology for Enhanced Solutions

IBM is set to acquire Applications Software Technology, a well-regarded global consultancy specializing in Oracle. This company excels in helping businesses transform through Oracle Cloud Applications, especially in the public sector, which includes local governments and K-12 schools.

Transforming cloud services in the public sector can be tricky. Many face challenges like updating old systems, a lack of skilled workers, and strict security needs. With this acquisition, IBM aims to strengthen its Oracle offerings, assisting clients in North America, the UK, and Ireland to tackle these issues and achieve meaningful digital transformations. This move builds on IBM’s earlier acquisition of Accelalpha in 2024, enhancing its skills in deploying and managing Oracle cloud solutions.

The consultants at Applications Software Technology are experts in the Oracle Cloud Applications Suite. They specialize in various areas such as Oracle Fusion Cloud ERP, Enterprise Performance Management (EPM), Human Capital Management (HCM), and more. They also have strong ties with Salesforce and MuleSoft, focusing on public sector solutions and beyond.

This acquisition aligns with IBM’s open ecosystem approach, allowing them to provide tailored solutions by combining different technologies and expertise from their growing partner network.

Since 1996, Applications Software Technology has been an Oracle partner, offering key services like business process redesign and Oracle Cloud deployment. They have a strong footprint not just in the public sector but also serve clients in manufacturing, energy, and consumer goods.

Headquartered in Lisle, Illinois, Applications Software Technology has teams across the United States, UK, Canada, and India. They have grown through notable acquisitions like Symatrix Limited and 9EDGE. Currently, they are part of a portfolio managed by Recognize Partners LP. Once finalized, Applications Software Technology will become part of IBM Consulting.

This acquisition is expected to wrap up in the first quarter of 2025, pending standard closing conditions and regulatory approvals. The financial terms of the deal haven’t been made public.

KEY QUOTES:

“Public sector clients’ cloud transformations often require a consulting partner with industry, domain, and technology expertise. 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.”

• Kelly Chambliss, Senior Vice President, IBM Consulting, Americas

“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. 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.”

• Justin Winter, CEO, Applications Software Technology