IBM has entered into an agreement to acquire Octo, a US based IT modernization and digital transformation services provider, exclusively serving the US federal government.
This acquisition will see approximately 1,500 Octo employees joining IBM Consulting’s US public and federal market organization.
Octo will be, rather fittingly, IBM’s eighth acquisition of 2022 and will complement IBM existing strengths in IT modernization and digital transformation, enhancing its ability to support federal agencies with a flexible, modern approach to digital transformation and growing IBM Consulting’s public and federal market organization to 4,200 highly skilled employees.
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John Granger, senior vice president of IBM Consulting, said: “Governments require agility and resiliency to meet the evolving needs of citizens directly and in real time.
“The combination of Octo’s highly qualified and respected team with IBM’s consulting expertise, technical capabilities and strategic partner ecosystem will enable federal clients to transform faster and better serve citizens.”
Mehul Sanghani, chief executive officer of Octo, said: “Octo was founded on the belief that digital transformation could be delivered at scale to modernize the federal government’s approach to today’s most pressing challenges – from public healthcare to national security, to defense and intelligence. Today, we are excited to join forces with IBM to continue to deliver these digital transformation capabilities with greater reach and scale.”
IBM’s acquisition of Octo from Arlington Capital Partners is expected to close in the fourth quarter of this year, subject to customary closing conditions. Financial details of this acquisition were not disclosed.
