Applications Software Technology (AST) is expected to enhance IBM’s consulting expertise in Oracle Cloud Applications, particularly for local governments, educational institutions, and other public sector customers.
As IBM weathers intense overseas scrutiny over its planned $6.4 billion acquisition of HashiCorp, the tech giant is set to close another deal with global Oracle consultancy Applications Software Technology this quarter. We are aiming for
Lisle, Illinois-based AST has been an Oracle partner since 1996, according to a statement from Armonk, New York-based IBM. AST is expected to enhance IBM’s consulting expertise in Oracle Cloud Applications, particularly for local governments, educational institutions, and other public sector customers.
IBM did not disclose financial details of the deal, which will take place on January 29, just days before the mainframe, cloud and AI vendor’s fourth-quarter earnings release. The vendor aims to acquire AST from New York-based private equity firm Recognize Partners.
“We are excited to join IBM and expand our innovative solutions that unlock new opportunities for our employees and drive business outcomes for our customers,” AST CEO Justin Winter said in a statement. “Application Software Technology and IBM have values centered around complementary capabilities, customer relationships, service offerings, people, innovation, and a commitment to customer success. At the same time, we will continue to grow in the cloud transformation solutions market.”
(Related: IBM’s acquisition of Hashicorp faces investigation in UK)
IBM to acquire AST
CRN has reached out to IBM and Oracle for comment.
IBM’s Consulting division is No. 6 on CRN’s 2024 Solution Provider 500. According to CRN’s 2024 Channel Chiefs, IBM’s vendor side has worked to increase the overall percentage of enterprise revenue generated through the channel and improve the technical skills of its partners.
According to IBM, the AST acquisition will expand IBM customers using Oracle Fusion Cloud Enterprise Resource Management, Oracle Cloud Human Capital Management, Oracle Fusion Configure, Price, Quote, and other products from the vendor, including subsidiaries JD Edwards and NetSuite. , which will bring in more consulting power.
The deal with AST comes on the heels of the company’s acquisition of another Oracle service provider, Bellevue, Wash.-based Accelalpha.
AST has expertise in leveraging Salesforce and CRM and AI vendor subsidiary MuleSoft for public sector organizations. AST also serves customers in the manufacturing, consumer goods, and energy sectors. The consultancy has employees in the US, UK, Canada and India.
As an AST owner, Recognize is no stranger to investing in solution providers. In December, Recognize invested in MSSP SDG. Late last year, the company became a majority shareholder in Blue Mantis, which ranks 148th on CRN’s 2024 Solution Provider 500.
IBM’s consulting-oriented acquisitions last year included assets of Japan-based Amazon Web Services consultancy Skyarch Networks and British software and services provider Advanced. It also sold QRadar’s cybersecurity assets to security vendor Palo Alto Networks for $500 million.
IBM reported in October that it ended its third quarter with $13.7 billion in cash, restricted cash and marketable securities, suggesting further acquisitions may be on the way.
