IBM has announced its intent to acquire Applications Software Technology LLC (AST), a global Oracle consultancy. AST brings deep expertise in driving business transformations with Oracle Cloud Applications, particularly for clients in the public sector such as local government and K-12 education. Public sector cloud transformations often face challenges, including transitioning legacy systems, scarce skills, and high security and compliance requirements.
The acquisition of AST will further enhance IBM’s Oracle solutions to help clients across North America and the UK address these complexities and drive lasting results in their digital transformations with Oracle Cloud Applications. Kelly Chambliss, Senior Vice President of IBM Consulting, Americas, stated, “Public sector clients’ cloud transformations often require a consulting partner with industry, domain, and technology expertise. This acquisition will boost IBM’s public sector and Oracle Cloud Application skills to help clients confidently navigate their business transformations.
AST’s team of consultants brings expertise across the Oracle Cloud Applications Suite, particularly with Oracle Fusion Cloud Enterprise Resource Planning (ERP), Enterprise Performance Management (EPM), Oracle Cloud Human Capital Management (HCM), Oracle Fusion Configure, Price, Quote (CPQ), Oracle Cloud Infrastructure (OCI), JD Edwards, and NetSuite.
The company also brings expertise in partnerships with Salesforce and MuleSoft, specializing in public sector solutions. This acquisition supports IBM’s open ecosystem approach, which brings together the necessary technology and expertise from an expanding partner ecosystem to solve client challenges. AST has been an Oracle partner since 1996 and a leading provider of Oracle solutions in business process redesign and Oracle Cloud deployment.
IBM expands public sector expertise
Alongside its strong public sector presence, AST also serves commercial clients in the manufacturing, energy, and consumer packaged goods industries. Justin Winter, CEO of AST, expressed excitement about joining IBM, stating, “We have complementary capabilities, client relationships, service offerings, and shared values around our people, innovation, and commitment to client success.
Together, we will continue to grow in the cloud transformation market.”
Headquartered in Lisle, Illinois, AST has teams across the US and the UK. Notable past acquisitions contributing to its growth include Symatrix Limited, 9EDGE Inc., and Computer Technology Resources Inc. Currently, AST is a portfolio company of funds managed by Recognize Partners LP.
Upon closing, AST will join IBM Consulting. The acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions and regulatory approvals. Financial details of the transaction were not disclosed.
This move comes amid heightened scrutiny over IBM’s proposed $6.4 billion acquisition of HashiCorp, which is currently under investigation by the UK’s Competition and Markets Authority for competition concerns. IBM’s recent acquisition strategy has included other significant purchases such as Japan-based Amazon Web Services consultancy Skyarch Networks and British software and services provider Advanced.
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