ARMONK, N.Y. - IBM (NYSE: NYSE:IBM), a $203 billion market cap technology giant and prominent player in the IT Services industry, has announced its intention to acquire Applications Software (ETR:SOWGn) Technology LLC, an Oracle (NYSE:ORCL) consultancy firm known for its expertise in Oracle Cloud Applications. The acquisition aims to enhance IBM's Oracle solutions, particularly in the public sector across North America, the UK, and Ireland. According to InvestingPro data, IBM has demonstrated strong market performance with a 36.5% return over the past year.
Applications Software Technology specializes in business transformations utilizing Oracle Cloud Applications, assisting clients with challenges such as transitioning from legacy systems and meeting high security and compliance requirements. The firm's expertise is expected to complement IBM's existing services, following its 2024 acquisition of Accelalpha. With a "GOOD" financial health score from InvestingPro and over 8 additional exclusive insights available to subscribers, IBM continues to demonstrate solid operational execution.
Kelly Chambliss, Senior Vice President of IBM Consulting in the Americas, stated that the acquisition is set to improve IBM's public sector and Oracle Cloud Application skills, enabling clients to confidently manage their business transformations.
The consultancy brings a team adept in the Oracle Cloud Applications Suite, including Oracle Fusion Cloud Enterprise Resource Management (ERP), Oracle Cloud Human Capital Management (HCM), and Oracle Fusion Configure, Price, Quote (CPQ). Applications Software Technology also offers expertise in Oracle Cloud Infrastructure (OCI), JD (NASDAQ:JD) Edwards, and NetSuite, and has partnerships with Salesforce (NYSE:CRM) and MuleSoft.
This move supports IBM's open ecosystem approach, which focuses on bringing together diverse technologies and expertise to address client challenges. Applications Software Technology has been an Oracle partner since 1996 and serves various industries, including manufacturing, energy, and consumer packaged goods.
Justin Winter, CEO of Applications Software Technology, expressed enthusiasm about joining IBM and expanding transformative solutions for customers. He highlighted the complementary capabilities and shared commitment to client success that both companies possess.
The acquisition, which is expected to close in the first quarter of 2025 subject to customary closing conditions and regulatory approvals, will see Applications Software Technology join IBM Consulting. Financial terms of the deal have not been disclosed. Based on current market analysis from InvestingPro, IBM is currently trading above its Fair Value, with comprehensive insights and detailed valuation metrics available in the Pro Research Report, part of the extensive analysis covering over 1,400 US stocks.
IBM's partnership with Oracle spans nearly four decades, and the company was recognized as a Leader in the 2023 IDC MarketScape for Oracle Implementation Services Ecosystem Worldwide. The acquisition is based on a press release statement, and further information on Applications Software Technology can be found on their website.
In other recent news, Walmart (NYSE:WMT) GoLocal has announced a strategic integration with IBM to streamline last-mile delivery for retailers. The collaboration will allow IBM retail clients to incorporate Walmart GoLocal's suite of delivery solutions into their operations. On a different note, Bernstein analysts have maintained a Market Perform rating on IBM shares, increasing the price target to $215 from $210. This adjustment recognizes IBM's efforts to improve its growth rate and portfolio.
In addition, GlobalFoundries (NASDAQ:GFS) and IBM have resolved their legal disputes, potentially paving the way for future collaborative ventures. Lockheed Martin (NYSE:LMT), a global defense technology leader, has also integrated IBM's advanced Granite large language models into its AI Factory tools, aiming to enhance innovation in defense and aerospace sectors. These are among the recent developments for IBM, reflecting its ongoing commitment to growth and innovation.
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