IBM to Acquire Nordcloud to Turbocharge Its Hybrid Cloud Consulting Capability

Rhea-AI Summary

IBM announced an agreement to acquire Nordcloud, a leading European cloud services provider, boosting its cloud migration and transformation capabilities. With headquarters in Helsinki, Nordcloud is recognized for its expertise in public cloud services and is triple certified by Amazon Web Services, Google Cloud Platform, and Microsoft Azure. This strategic acquisition aims to enhance IBM's hybrid cloud platform by integrating Nordcloud's tools and methodologies. The transaction is expected to close in Q1 2021, with financial details undisclosed.

Positive

• Acquisition of Nordcloud enhances IBM's cloud migration and transformation capabilities.
• Nordcloud's expertise in public cloud services supports IBM's hybrid cloud strategy.
• The move positions IBM advantageously in a market projected to exceed $200 billion by 2024.

Negative

• None.

ARMONK, N.Y., Dec. 21, 2020 /PRNewswire/ -- IBM (NYSE: IBM) today announced an agreement to acquire Nordcloud, a European leader in cloud implementation, application transformation and managed services. Today's news further advances IBM's cloud migration and transformation capabilities, an important aspect of its hybrid cloud platform growth strategy. 

Headquartered in Helsinki, Finland with offices in 10 European countries, Nordcloud's mission is to help businesses become stronger, fitter and more agile with cloud. From Gartner's Magic Quadrant to The Financial Times' league table of fast-growing European companies, Nordcloud is recognized as a leader in public cloud services. Over the past 10 years, the privately held company has grown into a pan-European leader in cloud transformation services. It is one of the few providers triple certified in Amazon Web Services, Google Cloud Platform and Microsoft Azure.

"Our clients are increasingly taking a more holistic approach to application modernization that allows them to operate across a traditional IT environment, private cloud and public clouds," said John Granger, Senior Vice President, Cloud Application Innovation and Chief Operating Officer, IBM Global Business Services. "IBM's acquisition of Nordcloud adds the kind of deep expertise that will drive our clients' digital transformations as well as support the further adoption of IBM's hybrid cloud platform. Nordcloud's cloud-native tools, methodologies and talent send a strong signal that IBM is committed to deliver our clients' successful journey to cloud."

"IBM's hybrid cloud approach is very complementary with our cloud-native approach to helping clients migrate, manage and modernize in the cloud," said Fernando Herrera, Chairman and Founder, Nordcloud. "As an experienced partner in today's cloud ecosystems, we work with all of the public cloud providers for the good of our clients throughout Europe. I am very excited to embrace IBM's open innovation mindset and help grow its global footprint."

Leading IT industry analysts estimate the market for cloud professional services will exceed $200 billion by 2024.¹ IBM's open and flexible approach to advising, building, moving and managing clients' hybrid environments gives enterprises the freedom to choose from multiple providers to best meet their business and IT needs. This acquisition is the latest example of how IBM is expanding the breadth and depth of its hybrid cloud offerings to manage complex integrations – of technologies, people and processes.

Following the close of the transaction, Nordcloud will become an IBM Company. Financial details were not disclosed. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2021.

To learn more about IBM Global Business Services, please visit: https://www.ibm.com/services.

Media Contact:
Clay Helm
IBM External Relations
clay.helm@ibm.com

¹Estimates based on Gartner and IDC 2024 projections for cloud managed services and professional services.

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SOURCE IBM

FAQ

What is the purpose of IBM's acquisition of Nordcloud?

IBM's acquisition of Nordcloud aims to enhance its cloud migration and transformation capabilities, supporting its hybrid cloud platform.

When is IBM's acquisition of Nordcloud expected to close?

The acquisition is expected to close in the first quarter of 2021, subject to customary closing conditions.

What is Nordcloud known for in the cloud services industry?

Nordcloud is recognized as a leader in public cloud services, triple certified in Amazon Web Services, Google Cloud Platform, and Microsoft Azure.

How does this acquisition affect IBM's market position?

This acquisition strengthens IBM's position in the hybrid cloud market, which is projected to exceed $200 billion by 2024.