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IBM to Acquire Applications Software Technology LLC, Bolstering Oracle Expertise to Help Clients Transform Their Operations

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IBM has announced its intent to acquire Applications Software Technology , a global Oracle consultancy specializing in public sector cloud transformations. The acquisition will enhance IBM's Oracle solutions capabilities across North America, the UK, and Ireland, building on IBM's 2024 Accelalpha acquisition.

Applications Software Technology brings expertise in Oracle Cloud Applications Suite, particularly in Oracle Fusion Cloud ERP, HCM, and CPQ, along with Oracle Cloud Infrastructure. The company has been an Oracle partner since 1996 and serves public sector clients, including local government and K-12 education, as well as commercial clients in manufacturing, energy, and consumer packaged goods industries.

The transaction is expected to close in Q1 2025, with Applications Software Technology joining IBM Consulting. Financial terms were not disclosed. The acquisition aligns with IBM's open ecosystem approach and will strengthen its position in helping clients navigate complex business transformations with Oracle cloud solutions.

IBM ha annunciato la sua intenzione di acquisire Applications Software Technology, una consulenza globale Oracle specializzata nelle trasformazioni cloud per il settore pubblico. L'acquisizione migliorerà le capacità di soluzioni Oracle di IBM in Nord America, nel Regno Unito e in Irlanda, facendo leva sull'acquisizione Accelalpha di IBM nel 2024.

Applications Software Technology porta competenze nella Oracle Cloud Applications Suite, in particolare in Oracle Fusion Cloud ERP, HCM e CPQ, oltre all'Oracle Cloud Infrastructure. L'azienda è partner di Oracle dal 1996 e serve clienti del settore pubblico, inclusi enti locali e istituzioni educative K-12, oltre a clienti commerciali nei settori della manifattura, dell'energia e dei beni di consumo confezionati.

Si prevede che la transazione si chiuda nel primo trimestre del 2025, con Applications Software Technology che entrerà a far parte di IBM Consulting. I dettagli finanziari non sono stati divulgati. L'acquisizione è allineata all'approccio dell'ecosistema aperto di IBM e rafforzerà la sua posizione nell'aiutare i clienti a navigare trasformazioni aziendali complesse con le soluzioni cloud di Oracle.

IBM ha anunciado su intención de adquirir Applications Software Technology, una consultoría global de Oracle especializada en transformaciones en la nube para el sector público. La adquisición mejorará las capacidades de soluciones de Oracle de IBM en América del Norte, el Reino Unido e Irlanda, apoyándose en la adquisición de Accelalpha de IBM en 2024.

Applications Software Technology aporta experiencia en la Oracle Cloud Applications Suite, en particular en Oracle Fusion Cloud ERP, HCM y CPQ, así como en Oracle Cloud Infrastructure. La compañía ha sido un socio de Oracle desde 1996 y atiende a clientes del sector público, incluyendo gobiernos locales y educación K-12, así como a clientes comerciales en los sectores de manufactura, energía y bienes de consumo empaquetados.

Se espera que la transacción se cierre en el primer trimestre de 2025, con Applications Software Technology uniéndose a IBM Consulting. No se han divulgado los términos financieros. La adquisición está alineada con el enfoque del ecosistema abierto de IBM y fortalecerá su posición en ayudar a los clientes a navegar transformaciones empresariales complejas con soluciones en la nube de Oracle.

IBM은 공적 부문 클라우드 변환을 전문으로 하는 글로벌 오라클 컨설팅 회사인 Applications Software Technology를 인수할 계획을 발표했습니다. 이 인수는 북미, 영국 및 아일랜드 전역에서 IBM의 오라클 솔루션 능력을 강화하고 IBM의 2024 Accelalpha 인수를 기반으로 할 것입니다.

Applications Software Technology는 오라클 클라우드 애플리케이션 스위트, 특히 오라클 퓨전 클라우드 ERP, HCM 및 CPQ와 오라클 클라우드 인프라에 대한 전문성을 제공합니다. 이 회사는 1996년부터 오라클의 파트너로 활동해 왔으며, 지방 정부 및 K-12 교육을 포함한 공공 부문 고객과 제조, 에너지 및 소비재 산업의 상업적 고객을 대상으로 서비스를 제공합니다.

거래는 2025년 1분기 중에 마감될 것으로 예상되며, Applications Software Technology는 IBM Consulting에 합류하게 됩니다. 재무 조건은 공개되지 않았습니다. 이 인수는 IBM의 개방형 생태계 접근 방식과 일치하며 고객들이 오라클 클라우드 솔루션으로 복잡한 비즈니스 변화를 탐색하는 데 도움을 줄 수 있는 IBM의 입지를 강화할 것입니다.

IBM a annoncé son intention d'acquérir Applications Software Technology, un cabinet de conseil global spécialisé dans les transformations cloud pour le secteur public. Cette acquisition renforcera les capacités d'IBM en matière de solutions Oracle en Amérique du Nord, au Royaume-Uni et en Irlande, s'appuyant sur l'acquisition d'Accelalpha par IBM en 2024.

Applications Software Technology apporte son expertise dans la suite d'applications Oracle Cloud, en particulier dans Oracle Fusion Cloud ERP, HCM et CPQ, ainsi que dans l'infrastructure cloud d'Oracle. L'entreprise est partenaire d'Oracle depuis 1996 et sert des clients du secteur public, notamment des gouvernements locaux et des établissements d'enseignement K-12, ainsi que des clients commerciaux dans les secteurs de la fabrication, de l'énergie et des biens de consommation conditionnés.

La transaction devrait se clôturer au premier trimestre 2025, avec Applications Software Technology rejoignant IBM Consulting. Les termes financiers n'ont pas été divulgués. L'acquisition est conforme à l'approche de l'écosystème ouvert d'IBM et renforcera sa position pour aider les clients à naviguer dans des transformations commerciales complexes avec les solutions cloud d'Oracle.

IBM hat die Absicht angekündigt, Applications Software Technology zu erwerben, eine globale Oracle-Beratung, die auf Cloud-Transformationen im öffentlichen Sektor spezialisiert ist. Die Übernahme wird IBMs Lösungen für Oracle in Nordamerika, dem Vereinigten Königreich und Irland verbessern und auf der Übernahme von Accelalpha durch IBM im Jahr 2024 basieren.

Applications Software Technology bringt Expertise in der Oracle Cloud Applications Suite mit, insbesondere in Oracle Fusion Cloud ERP, HCM und CPQ, sowie in der Oracle Cloud Infrastructure. Das Unternehmen ist seit 1996 Oracle-Partner und bedient Kunden im öffentlichen Sektor, darunter lokale Regierungen und K-12-Bildungseinrichtungen, sowie gewerbliche Kunden in den Bereichen Fertigung, Energie und Konsumgüter.

Der Abschluss der Transaktion wird im ersten Quartal 2025 erwartet, wobei Applications Software Technology zu IBM Consulting stoßen wird. Finanzielle Einzelheiten wurden nicht bekannt gegeben. Die Übernahme entspricht IBMs offenem Ökosystemansatz und wird seine Position stärken, um Kunden bei der Navigation durch komplexe Unternehmenswandel mit Oracle-Cloud-Lösungen zu unterstützen.

Positive
  • Expands IBM's Oracle Cloud Applications expertise and service capabilities
  • Strengthens IBM's presence in public sector cloud transformations
  • Adds specialized expertise in key Oracle products (ERP, HCM, CPQ)
  • Gains access to established client base in US, UK, Canada, and India
  • Complements previous Accelalpha acquisition for enhanced Oracle solutions
Negative
  • None.

Insights

This strategic acquisition strengthens IBM's Oracle consulting capabilities, particularly in the critical public sector vertical. The deal brings deep expertise in Oracle Cloud Applications, especially in ERP, HCM and CPQ implementations, filling important capability gaps in IBM's service portfolio. Applications Software Technology's 27-year Oracle partnership and established presence in US/UK public sectors represents substantial intellectual capital acquisition.

The timing aligns with increasing public sector cloud migration demands and follows IBM's recent Accelalpha acquisition, indicating a deliberate strategy to consolidate Oracle implementation expertise. The geographic footprint across US, UK, Canada and India provides valuable delivery capabilities and client access. While financial terms weren't disclosed, the acquisition's value lies in specialized talent acquisition during a period of intense competition for Oracle cloud skills.

For investors, this represents a calculated move to capture growing public sector digital transformation spending, particularly in complex Oracle cloud migrations. The deal strengthens IBM's position against competitors like Accenture and Deloitte in the lucrative Oracle implementation space.

The acquisition addresses a critical market need in public sector cloud transformation. Government and education institutions face unique challenges in cloud migration - legacy system dependencies, strict compliance requirements and specialized workflow needs. Applications Software Technology's proven track record in this sector, particularly in local government and K-12 education, provides IBM with valuable domain expertise and pre-built solutions.

The deal's significance extends beyond technical capabilities - public sector contracts often require deep understanding of procurement processes, security protocols and regulatory frameworks. Applications Software Technology's established relationships and compliance knowledge in these areas represents significant value. The addition of Salesforce and MuleSoft expertise further enhances IBM's ability to deliver integrated solutions tailored to public sector needs.

This acquisition strategically positions IBM in the rapidly growing Oracle Cloud Applications market. Applications Software Technology's expertise across Oracle's core enterprise applications (ERP, EPM, HCM) and infrastructure (OCI) addresses the increasing demand for comprehensive cloud transformation services. The company's additional capabilities in JD Edwards and NetSuite provide valuable mid-market coverage.

The deal's timing is particularly relevant as organizations accelerate their shift from legacy systems to cloud-based solutions. Applications Software Technology's experience in business process redesign combined with technical implementation capabilities enables IBM to offer end-to-end transformation services. This comprehensive approach is increasingly important as clients seek partners who can manage both technical and organizational change aspects of cloud adoption.

Applications Software Technology's deep US and UK public sector skills support clients' Oracle Cloud Application transformations

ARMONK, N.Y., Jan. 16, 2025 /PRNewswire/ -- IBM (NYSE: IBM) today announced its intent to acquire Applications Software Technology LLC1, a global Oracle consultancy. Applications Software Technology brings deep expertise driving business transformations with Oracle Cloud Applications, including for clients in the public sector such as local government and K-12 education.

Public sector cloud transformations frequently face issues that include difficulty transitioning legacy systems, scarce skills or high security and compliance requirements. This acquisition will further enhance IBM's Oracle solutions to help clients across North America, the UK and Ireland address those complexities and drive lasting results in their digital transformations with Oracle Cloud Applications. It will build on IBM's 2024 acquisition of Accelalpha, expanding IBM's ability to help clients deploy, manage and drive value from their Oracle cloud solutions.

"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's large team of consultants brings expertise across the Oracle Cloud Applications Suite, particularly around Oracle Fusion Cloud Enterprise Resource Management (ERP) including Enterprise Performance Management (EPM), Oracle Cloud Human Capital Management (HCM), and Oracle Fusion Configure, Price, Quote (CPQ), as well as Oracle Cloud Infrastructure (OCI), JD Edwards, and NetSuite. Applications Software Technology also brings expertise and partnerships with Salesforce and MuleSoft, specializing in public sector solutions and more.

This acquisition supports IBM's open ecosystem approach which allows us to meet clients where they are, bringing together whatever technology and expertise are needed across our expanding partner ecosystem to solve the client challenge.

Applications Software Technology has been an Oracle partner since 1996 and a leading provider of Oracle solutions covering areas like business process redesign and Oracle Cloud deployment. In addition to its strong public sector presence, Applications Software Technology also serves commercial clients in the manufacturing, energy and consumer packaged goods industries.

"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 Justin Winter, CEO, Applications Software Technology. "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."

Headquartered in Lisle, Illinois, Applications Software Technology has teams across the US, UK, Canada and India. Notable past acquisitions contributing to its growth include Symatrix Limited, 9EDGE Inc. and Computer Technology Resources Inc. Applications Software Technology is currently a portfolio company of funds managed by Recognize Partners LP. Upon close, Applications Software Technology will join IBM Consulting.

IBM and Oracle's partnership spans almost 40 years. IBM was named a Leader in the 2023 IDC MarketScape for Oracle Implementation Services Ecosystem Worldwide2.

The acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions and regulatory approvals. Financial details of the transaction were not disclosed.

For more information on Applications Software Technology, visit https://astcorporation.com/

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. Thousands of governments 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 long-standing commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.

Media Contact
Michelle Mattelson
IBM External Relations
morrison@us.ibm.com

1 Applications Software Technology LLC refers to the four companies included in this acquisition: Applications Software Technology LLC, its subsidiaries 9Edge and Computer Technology Resources, and Symatrix Limited

2 IDC MarketScape: Worldwide Oracle Implementation Services 2023 Vendor Assessment (doc# US49837623, August 2023)

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SOURCE IBM

FAQ

When is IBM's acquisition of Applications Software Technology expected to close?

The acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions and regulatory approvals.

What Oracle solutions does Applications Software Technology specialize in?

The company specializes in Oracle Fusion Cloud ERP, Enterprise Performance Management, Human Capital Management, Configure Price Quote, Oracle Cloud Infrastructure, JD Edwards, and NetSuite.

How will this acquisition impact IBM's Oracle consulting services?

The acquisition will enhance IBM's Oracle solutions capabilities, particularly in public sector cloud transformations, and expand its expertise in Oracle Cloud Applications across North America, the UK, and Ireland.

What industries does Applications Software Technology serve?

The company serves public sector clients (local government and K-12 education) as well as commercial clients in manufacturing, energy, and consumer packaged goods industries.

How long has Applications Software Technology been an Oracle partner?

Applications Software Technology has been an Oracle partner since 1996, providing Oracle solutions including business process redesign and Oracle Cloud deployment.

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