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

Rhea-AI Summary

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.

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.

News Market Reaction

+1.20%

1 alert

+1.20% News Effect

On the day this news was published, IBM gained 1.20%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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.