IBM stock rises on acquisition of SAP services provider Cognitus

Published 15/10/2025, 17:30
© Reuters

Investing.com -- International Business Machines (NYSE:IBM) stock rose 1.9% Wednesday after the technology giant announced plans to acquire Cognitus, a leading SAP S/4HANA services provider with AI-powered solutions.

The acquisition will strengthen IBM’s SAP implementation capabilities by adding Cognitus’ industry-specific expertise and proprietary software assets. Cognitus, a Dallas-based SAP Gold & Co-innovation partner founded in 2002, specializes in end-to-end SAP S/4HANA implementations and application maintenance services.

"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.

The deal will enhance IBM’s industry expertise and AI solutions portfolio, particularly in regulated industries. Cognitus brings several SAP-endorsed software assets, including solutions for government contracting, contract lifecycle management, data migration, and real-time billing.

Pat Sathi, CEO of Cognitus, noted that joining IBM would allow the company to "accelerate SAP transformation through innovation" while creating new opportunities for employees and strengthening client services.

The acquisition aligns with IBM’s asset-based approach to digital transformation and represents continued investment in building skills for strategic partnerships. Financial details of the transaction were not disclosed, and the acquisition remains subject to customary closing conditions and regulatory approvals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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