IBM announced that it has signed a definitive agreement to acquire Cognitus, a leading SAP S/4HANA services provider, with industry-specific, AI-powered solutions.
Cognitus will bring mission-critical SAP skills, including in RISE and GROW with SAP, as well as an extensive portfolio of software assets.
This combination of services, software, and industry expertise, aligns with IBM's asset-based approach to digital transformation, driving increased productivity and operational efficiency for clients around the world, IBM said.
Cognitus brings more than 20 years of SAP expertise, helping enterprise clients with end-to-end SAP S/4HANA implementations and application maintenance services.
Cognitus' services capabilities are boosted by its suite of proprietary, SAP-endorsed and AI-enabled software assets.
These assets include Cognitus CIS-GovCon which supports end-to-end government contracting requirements; Cognitus CLM, an AI-powered contract lifecycle management solution built specifically for government contractors; Cognitus Data Migration, a low-code, AI solution that simplifies the migration of data from legacy systems to SAP S/4HANA; and Cognitus Real-Time Billing, which accelerates high-volume, project-based billing by processing transactions in real time.
Cognitus' services and software capabilities throughout the entire project lifecycle of SAP transformation projects enable faster decision-making, reduce risk, and support compliance. This helps organizations in complex and regulated industries simplify operations and achieve greater consistency with a single provider.
"SAP is the foundation for so many digital transformations around the world. Clients are turning to trusted partners that know their industries inside and out and can deploy AI-powered solutions to their enterprise operations," said Neil Dhar, managing partner, IBM Consulting Americas. "Cognitus brings deep industry expertise and proprietary AI technology that improves the efficiency of SAP implementations and will extend the functionality of tools across our SAP portfolio."
IBM has extensive skills in SAP technology and transformations, complemented by its AI-led delivery platform, IBM Consulting Advantage. The acquisition of Cognitus strengthens IBM's industry expertise, portfolio of AI solutions, and capabilities in RISE and GROW with SAP, bolstering its ability to deliver modern SAP solutions faster and more effectively for global clients, according to IBM.
"Becoming part of IBM enables Cognitus to amplify what we do best—accelerating SAP transformation through innovation," said Pat Sathi, CEO of Cognitus. "It creates new opportunities for our people while strengthening how we serve our customers. Our clients will continue to benefit from our proven SAP-Endorsed solutions and accelerators, backed by Cognitus' deep industry expertise in regulated industries and now supported by IBM's global scale and advanced technology capabilities."
Financial details of the transaction were not disclosed, and IBM's acquisition of Cognitus is subject to customary closing conditions and regulatory approvals.
For more information about this news, visit www.ibm.com.