US tech major IBM has agreed to acquire Texas-headquartered SAP S/4HANA services provider Cognitus to further strengthen its SAP capabilities.
The transaction, for which financial details have not been disclosed, is subject to customary closing conditions and regulatory approvals.
Cognitus has over two decades of experience in SAP systems integration, with a particular focus on RISE and GROW with SAP initiatives. Additionally, the company offers a portfolio of proprietary, AI-enabled software solutions
It offers software assets, including CIS-GovCon for government contracting, CLM for AI-supported contract lifecycle management, a low-code Data Migration solution for transitioning to SAP S/4HANA, and Real-Time Billing software for handling high-volume transactions.
These tools are designed to streamline processes and enhance efficiency across various business operations.
The company is recognised as an SAP Gold & Co-innovation partner, and its products are SAP-endorsed.
Cognitus CEO Pat Sathi said: “Becoming part of IBM enables Cognitus to amplify what we do best – accelerating SAP transformation through innovation.
“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.”
IBM indicated that Cognitus’ offerings are structured to support SAP transformation projects throughout their lifecycle, addressing requirements in regulated and complex industry environments.
IBM’s SAP practice is supported by the IBM Consulting Advantage platform, which includes AI-driven delivery capabilities.
IBM has noted that the Cognitus acquisition forms part of its strategy to invest in capabilities aligned with strategic partners such as AWS, Microsoft, Oracle, and Palo Alto Networks.
IBM Consulting Americas managing partner Neil Dhar said: “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.”
In a separate development, IBM has announced a partnership with India-based Bharti Airtel to support Airtel Cloud.
Airtel Cloud customers will gain access to IBM Power systems portfolio as-a-Service, including the latest IBM Power11 servers configured for mission-critical workloads.
These services are aimed at regulated industries and will support IBM Power AIX, IBM i, Linux, and SAP Cloud ERP.
Bharti Airtel managing director and vice chairman Gopal Vittal said: “Airtel Cloud is designed to be highly secure and compliant, setting new industry benchmarks as an agile and resilient cloud platform.
“Today, with the IBM partnership, we are adding substantial capabilities to our Cloud platform to address the unique needs of several industries that require migration from IBM Power systems and allow for AI readiness.”
Recently, IBM unveiled new products and updates at its annual TechXchange conference, emphasising the operationalisation of AI for enterprise applications.
