IBM eyes Oracle expertise gains with latest acquisition

IBM has announced plans to acquire global Oracle consultancy Applications Software Technology in an effort to bolster its Oracle expertise.

Applications Software Technology specializes in driving business transformation with Oracle Cloud Applications, particularly for clients in the public sector such as local government and education.

IBM said the deal will enhance its Oracle solutions for clients across North America, the UK, and Ireland, helping them deal with issues such as transitioning legacy systems, the scarcity of skills, or security and compliance requirements.

The agreement builds on IBM's acquisition of Accelalpha, a global provider of Oracle Cloud Applications consulting across advisory, implementation, and managed services, in September last year.

"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 has been an Oracle partner since 1996, providing Oracle solutions in areas such as business process redesign and Oracle Cloud deployment.

Headquartered in Lisle, Illinois, the company has teams across the US, UK, Canada, and India. Its past acquisitions include Symatrix, 9EDGE, and Computer Technology Resources.

It's currently a portfolio company of funds managed by Recognize Partners; after the IBM deal is closed it will join IBM Consulting.

Along with its public sector presence, Applications Software Technology also serves commercial clients in the manufacturing, energy and consumer packaged goods industries.

It partners with Salesforce and MuleSoft, with its consultants working across the Oracle Cloud Applications Suite, particularly around Oracle Fusion Cloud Enterprise Resource Management (ERP).

"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 CEO Justin Winter.

"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."

The deal, for undisclosed terms, is expected to close in the first quarter of 2025, pending customary closing conditions and regulatory approvals.