IBM to acquire SAP services provider Cognitus

ARMONK, N.Y. - IBM (NYSE:IBM), a prominent player in the IT Services industry with a market capitalization of $257 billion and annual revenue of $64 billion, announced today it has signed a definitive agreement to acquire Cognitus, a Dallas-based SAP S/4HANA services provider specializing in industry-specific solutions. According to InvestingPro data, IBM maintains a GOOD financial health score, reflecting its strong market position.

The acquisition will strengthen IBM’s capabilities in complex and regulated industries, including Aerospace and Defense, Energy and Utilities, and Manufacturing, according to a company press release. This strategic move aligns with IBM’s growth trajectory, which has resulted in a 28% year-to-date return for investors.

Founded in 2002, Cognitus brings over two decades of SAP expertise and a portfolio of proprietary software assets to IBM. These include Cognitus CIS-GovCon for government contracting requirements, an AI-powered contract lifecycle management solution, and tools for data migration and real-time billing.

"SAP is the foundation for so many digital transformations around the world," said Neil Dhar, Managing Partner, IBM Consulting Americas. "Clients are turning to trusted partners that know their industries inside and out and can deploy AI-powered solutions to their enterprise operations."

Cognitus CEO Pat Sathi stated the acquisition "creates new opportunities for our people while strengthening how we serve our customers."

The transaction represents IBM’s continued investment in skills for strategic partners. As an SAP Gold & Co-innovation partner, Cognitus has focused on delivering RISE and GROW with SAP programs, helping enterprise clients with end-to-end SAP S/4HANA implementations and application maintenance services.

Financial details were not disclosed. The acquisition remains subject to customary closing conditions and regulatory approvals. For investors seeking deeper insights into IBM’s valuation and growth prospects, InvestingPro offers comprehensive analysis, including 10 additional ProTips and detailed financial metrics in its Pro Research Report, one of 1,400+ available for top US stocks.

In other recent news, IBM announced its Spyre Accelerator, aimed at enhancing AI inferencing workloads, will be generally available on October 28 for IBM z17 and LinuxONE 5 systems. The company also revealed new AI productivity tools during its TechXchange 2025 event, introducing enhancements to its watsonx Orchestrate framework, including AgentOps for real-time monitoring. Meanwhile, IBM and S&P Global have partnered to integrate AI into supply chain management, combining IBM’s AI technology with S&P Global’s data to improve visibility and vendor selection tools. Additionally, IBM has joined forces with Anthropic to incorporate the Claude large language model into IBM’s software products, reportedly boosting productivity by 45% in internal tests. In another collaboration, IBM has committed resources to Datavault AI to support its AI data platform, focusing on data authentication and security. These developments highlight IBM’s continuous efforts to advance AI integration across various sectors.

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